Mortgage rates climb back above 7%

  • 6 months ago
TheStreet’s J.D. Durkin brings you the biggest news of the day, including what how the market fared and what caused mortgage rates to climb back up above 7%.
Transcript
00:00 I'm JD Durkin reporting from the floor of the New York Stock Exchange.
00:03 Stocks were in the red to close out this Monday trading session.
00:06 The Dow down 275 points.
00:09 The tech heavy Nasdaq closed down 0.2 percent while the S&P 500 closed 0.3 percent lower.
00:15 This all comes after Fed Chair Jerome Powell indicated that interest rates would likely
00:19 need to stay higher for longer due to persistent inflation.
00:24 That's now pricing in a 14 percent chance that the Fed cuts rates when it meets in March.
00:30 Separately, investors will be looking out for earnings from Snap, Spotify and Chipotle
00:35 due out on Tuesday.
00:37 In other news, for the first time since December, mortgage rates have climbed back above 7 percent.
00:42 According to Mortgage News Daily, the average rate for a 30-year fixed mortgage now stands
00:47 at 7.04 percent.
00:49 Rates saw their biggest one-day jump in over a year after a higher-than-anticipated January
00:54 jobs report as well as a high monthly manufacturing report.
00:58 Those looking to buy a home in the year 2024 should take particular note as even small
01:03 changes in the 30-year can impact monthly mortgage payments by hundreds of dollars.
01:08 2023 was one of the worst years for home sales in nearly three decades, with high prices
01:14 and limited supply making it difficult on prospective homebuyers.
01:17 According to the National Association of Realtors, home prices rose again in December, marking
01:22 the sixth consecutive month with year-over-year hikes.
01:25 The median price for a home in 2023 was a record high - $389,800.
01:32 So what does all this say about the outlook for the rest of the year?
01:36 Mortgage News Daily's chief operating officer says, "The future of rates in 2024 is all
01:41 about ifs and thens.
01:43 If we see more data like last Friday's jobs report, rates will have a hard time getting
01:48 back below 7 percent."
01:49 But inflation is even more important than the labor market.
01:52 If inflation comes in cooler than expected, it could balance the outlook.
01:57 That'll do it for your daily briefing.
01:59 From the floor of the New York Stock Exchange, I'm J.D. Durkin with The Street.
02:02 -

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