Jeff Adams said there is nothing in the way of higher mortgage rates scare

Jeff Adams said there is nothing in the way of higher mortgage rates scare Rates are not the driving factor for home sales. The Jeff Adams Real Estate Seminar At smallest amount that's what the correlation between rate moves and mortgage application to buy a home suggests. 

After several week-to-week declines in mortgage application, the numbers increased by 4 % last week, according to the Mortgage Bankers Association. The MBA seasonally adjusted index of mortgage application activity, which includes refinancing and home buy demand, rose 1.9 % in the week ended July 4.

The normal contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000) increased to 4.32 % from 4.28 % the earlier week. The rise in rates did, however, affect applications to refinance, which rose just 0.4 % from the previous week. Both refinance and buy applications are down from one year ago, 46 % and 10 % respectively. 

Rates have adhered to this range for 2 months, noted analysts at Mortgage News Daily. The visits to the lowly levels have been more and more. This could point to that the longer-term force is pointing very slightly higher.

The housing market continues to sputter into recovery, mostly on the back of higher net-worth and cash buyers. The latter made up more than 1-3 of all May home sales. First times buyers are still largely left out, hampered by tighter mortgage underwrite and high levels of student debt.

Most of the consumer debt being taken on continues to be student loans which rise another $4.4 billion month over month, not seasonally adjusted, to $780.1 billion, a new record high, said Peter Boockvar of the Lindsey Group. 

Our rates strategists have revised down their year-end forecast of 10-year Treasury yields from 3.25 % to 3 %," Goldman Sachs analysts wrote in a note to investors. We revise our mortgage rate forecast accordingly. We now expect mortgage rate to rise to 4.5 % by this year-end.