Visitors Now:
Total Visits:
Total Stories:
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

US Housing Market In Peril As “Increase In Mortgage Rates Has Shocked Consumers”

Sunday, November 27, 2016 16:54
% of readers think this story is Fact. Add your two cents.

(Before It's News)

zerohedge.com / by Tyler Durden / Nov 27, 2016 3:30 PM

While rising treasury yields may be music to the ears of savers who have been crushed by low interest rates over the past 7 years, they’re a bit of downer for the overwhelming majority of Americans that have been funding their lavish lifestyles with cheap debt.  Yes, sadly the days of upgrading to the $65,000 luxury car despite a $40,000 annual salary, because you can “afford it” so long as you can cover the low monthly payments courtesy of 7-year terms and low interest rates, may finally be coming to an end.

But auto OEM’s aren’t the only ones about to get crushed by the “normalization” of interest rate policies in the U.S.  As the Wall Street Journal points out, according to the Mortgage Bankers Association, mortgage refinancings are set to drop 46% in 2017.  And with many American’s funding their daily expenses with “cash-out” mortgage refi’s, pretty much everyone selling goods to consumers, which happens to represent about two-thirds of the economy, has reason for concern.

The fast rise in rates has spurred homeowners to pull back from refinancing their mortgages. Applications dropped 3% in the week ended Nov. 18 from the prior one, the seventh consecutive weekly decline, and the second since Election Day, according to data released Wednesday by the Mortgage Bankers Association.

The MBA estimates refinances will fall 46% next year, to $484 billion, which will hurt Americans’ ability to free up cash by reducing the cost of their monthly mortgages. The fall in refinances also will hit an important area of consumer-loan growth for banks. To slow the possible damage, banks already are pitching riskier loans that come with adjustable interest rates or allow borrowers to pull more equity out of their homes.

READ MORE

The post US Housing Market In Peril As “Increase In Mortgage Rates Has Shocked Consumers” appeared first on Silver For The People.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.