video Finance Videos
As rates jump- the race home
Wednesday, June 12, 2013 - 02:04
June 12 - Despite another jump in mortgage rates, mortgage applications activity surged 5 percent- as buyers get off the sidelines to get in on the home market. Bobbi Rebell reports
▲ Hide Transcript
▶ View Transcript
The race is on- as home buyers hit the gas pedal - mortgage applications surging 5 percent last week- trying to lock in rates as they continue to climb. The average 30 year mortgage rose to 4.15 percent- the highest since late March of 2012. Even refinancings- which had been tapering off a bit- were up 5 percent. But the rush may be premature- rates may stay in a new, slightly higher range says Steven Ricchiuto, Chief US Economist, Mizuho Securities SOUNDBITE: STEVEN RICCHIUTO, CHIEF U.S. ECONOMIST, MIZUHO SECURITIES (ENGLISH) SAYING: "We've put in a bottom in the interest rate cycle at least for now. Could we go back and retest it? The answer is yes. Are we likely to visit 3% before we go back to 1.5%? The answer there again is yes." Rates have risen 56 basis points since the start of May on worries the Fed could slow its stimulus program sooner than expected. But home prices have been rising on tight inventories- which effects affordability. Trulia's Chief Economist Jed Kolko: SOUNDBITE: JED KOLKO, CHIEF ECONOMIST, TRULIA (ENGLISH) SAYING: "Even if consumers wanted to hurry up and buy a home before rates rise even farther, they probably can't and that is because inventory is so tight, because there are so few homes on the market for sale now." Kolko believes despite the rise last week, refinancings will fall- and that could create new opportunties for both banks and home buyers: SOUNDBITE: JED KOLKO, CHIEF ECONOMIST, TRULIA (ENGLISH) SAYING: "It might end up getting easier to get a loan if you are looking to buy a home. The reason is when rates were very, very low there was so much demand for refinancing that banks could make lots of loans for refinancing and that in some cases stretched their capacity a bit, just in terms of the process of putting out all of these loans. As the demand for refinancing dries up, banks might have more room to make home purchase loans." Kolko also points out that new mortgage rules- designed to restrict some of the toxic loans of the recent housing bubble- come into effect early next year.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code
As rates jump- the race home
Wednesday, June 12, 2013 - 02:04
Top News »
1:07am BST - (1:01)
1:06am BST - (1:28)
1:06am BST - (1:38)
Thu, 26 Apr, 2018 - (2:19)
Thu, 26 Apr, 2018 - (1:28)
Thu, 26 Apr, 2018 - (2:10)
Thu, 26 Apr, 2018 - (1:00)
Thu, 26 Apr, 2018 - (1:26)
Thu, 26 Apr, 2018 - (1:20)
Thu, 26 Apr, 2018 - (1:17)
Thu, 26 Apr, 2018 - (1:22)
Thu, 26 Apr, 2018 - (2:35)
Editors' Picks »
Thu, 26 Apr, 2018 - (1:59)
Wed, 25 Apr, 2018 - (1:59)
Tue, 24 Apr, 2018 - (2:00)
Tue, 24 Apr, 2018 - (1:36)
Mon, 23 Apr, 2018 - (1:56)
Fri, 20 Apr, 2018 - (1:24)
Fri, 20 Apr, 2018 - (2:04)
Thu, 19 Apr, 2018 - (1:45)
Most Popular »
Fri, 01 Sep, 2017 - (1:56)
Thu, 12 Feb, 2015 - (1:38)
Tue, 22 Apr, 2014 - (2:07)
Mon, 02 Sep, 2013 - (2:29)
Tue, 19 Sep, 2017 - (1:52)
Business »
Thu, 26 Apr, 2018 - (1:59)
Thu, 26 Apr, 2018 - (1:24)
Thu, 26 Apr, 2018 - (1:25)
Thu, 26 Apr, 2018 - (1:15)
Thu, 26 Apr, 2018 - (1:27)
Thu, 26 Apr, 2018 - (4:47)
Thu, 26 Apr, 2018 - (1:26)
Thu, 26 Apr, 2018 - (1:55)
Thu, 26 Apr, 2018 - (0:58)
Thu, 26 Apr, 2018 - (1:31)
Thu, 26 Apr, 2018 - (1:53)
Thu, 26 Apr, 2018 - (1:13)
Featured Videos
Giant sloth vs. ancient man: footprints reveal prehistoric hunt
Scientists uncover evidence of ancient humans engaged in a deadly face-off with a giant sloth, showing for the first time how our ancestors might have tackled such a formidable prey
Driverless car fleet plans London to Oxford run
A fleet of autonomous cars could take to Britain's roads later this year with advanced trials of a £13 million project well under way
UK royals Kate and William have baby boy
It's a boy. Britain's Duchess of Cambridge has given birth to her third child, and second son, with husband Prince William
Aussie pilot Hall soars to victory in Cannes
Australian pilot Matt Hall claims victory in the second leg of the Red Bull Air Race world championship in Cannes, France
Luxury liner Queen Elizabeth II reopens as floating hotel
One of the world's most famous ships is now a floating hotel permanently moored at Dubai's Mina Rashid port
Technology »
Thu, 26 Apr, 2018 - (2:03)
Wed, 25 Apr, 2018 - (1:17)
Wed, 25 Apr, 2018 - (2:04)
Wed, 25 Apr, 2018 - (1:49)
Tue, 24 Apr, 2018 - (1:54)
Tue, 24 Apr, 2018 - (2:13)
Tue, 24 Apr, 2018 - (1:51)
Tue, 24 Apr, 2018 - (1:48)
Mon, 23 Apr, 2018 - (1:55)
Sun, 22 Apr, 2018 - (1:30)
Entertainment »
Thu, 26 Apr, 2018 - (0:47)
Thu, 26 Apr, 2018 - (1:47)
Thu, 26 Apr, 2018 - (2:16)
Thu, 26 Apr, 2018 - (2:21)
Thu, 26 Apr, 2018 - (0:57)
Thu, 26 Apr, 2018 - (0:54)
Wed, 25 Apr, 2018 - (1:17)
Tue, 24 Apr, 2018 - (1:38)
Tue, 24 Apr, 2018 - (1:51)
Tue, 24 Apr, 2018 - (1:18)
Tue, 24 Apr, 2018 - (1:25)
Tue, 24 Apr, 2018 - (2:02)
Sports And Leisure »
Wed, 25 Apr, 2018 - (0:55)
Tue, 24 Apr, 2018 - (0:47)
Mon, 23 Apr, 2018 - (1:17)
Mon, 23 Apr, 2018 - (2:38)
Mon, 23 Apr, 2018 - (1:27)
Mon, 23 Apr, 2018 - (1:17)
Mon, 23 Apr, 2018 - (1:30)
Mon, 23 Apr, 2018 - (1:40)
Mon, 23 Apr, 2018 - (1:07)
Fri, 20 Apr, 2018 - (1:08)
Oddly Enough »
Thu, 26 Apr, 2018 - (2:42)
Thu, 26 Apr, 2018 - (1:24)
Wed, 25 Apr, 2018 - (1:10)
Mon, 23 Apr, 2018 - (0:45)
Mon, 23 Apr, 2018 - (2:11)
Fri, 20 Apr, 2018 - (1:00)
Fri, 20 Apr, 2018 - (1:27)
Thu, 19 Apr, 2018 - (0:53)
Thu, 19 Apr, 2018 - (0:53)
Thu, 19 Apr, 2018 - (2:22)
Dateline Asia »
Tue, 05 Dec, 2017 - (2:06)
Tue, 05 Dec, 2017 - (2:11)
Fri, 01 Dec, 2017 - (2:04)
Thu, 30 Nov, 2017 - (2:10)
Thu, 30 Nov, 2017 - (2:14)
Wed, 29 Nov, 2017 - (2:11)
Tue, 28 Nov, 2017 - (1:55)
Tue, 28 Nov, 2017 - (2:21)
Mon, 27 Nov, 2017 - (2:25)
Fri, 24 Nov, 2017 - (2:16)
Fri, 24 Nov, 2017 - (2:14)
Thu, 23 Nov, 2017 - (2:18)