Advertisement
UK markets closed

  • FTSE 100

    8,213.49
    +41.34 (+0.51%)
     

  • FTSE 250

    20,164.54
    +112.21 (+0.56%)
     

  • AIM

    771.53
    +3.42 (+0.45%)
     

  • GBP/EUR

    1.1652
    -0.0031 (-0.26%)
     

  • GBP/USD

    1.2546
    +0.0013 (+0.11%)
     

  • Bitcoin GBP

    50,384.83
    +3,066.73 (+6.48%)
     

  • CMC Crypto 200

    1,359.39
    +82.41 (+6.45%)
     

  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     

  • DOW

    38,675.68
    +450.02 (+1.18%)
     

  • CRUDE OIL

    77.99
    -0.96 (-1.22%)
     

  • GOLD FUTURES

    2,310.10
    +0.50 (+0.02%)
     

  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     

  • HANG SENG

    18,475.92
    +268.79 (+1.48%)
     

  • DAX

    18,001.60
    +105.10 (+0.59%)
     

  • CAC 40

    7,957.57
    +42.92 (+0.54%)
     
MONEY:

Best savings accounts that offer above inflation rates

Where to find a top-rated deal that works for you

Real Estate Investments Fall as Mortgage Rates Pop Over 6%

Investing.com
·1-min read

By Liz Moyer

Investing.com -- Real estate investments are getting burned by mortgage rates that have soared above 6%.

Nationally, the average 30-year fixed-rate mortgage rate is 5.87%, according to Bankrate.com, though some mortgage lenders were quoting rates above 6% in certain markets. The national average is up 36 basis points from this time last week, Bankrate said. Mortgage loan interest rates are rising as the Federal Reserve moves to increase its own benchmark rate to tamp down inflation.

The rising rates threaten to crimp mortgage demand and slowdown a previously hot housing market. Would-be home buyers have been stepping to the sideline to wait out the real estate market, which has been characterized by soaring prices and limited available housing to buy.

ADVERTISEMENT

Shares of Invesco Mortgage Capital Inc (NYSE:IVR) fell 8.5% on Tuesday as mortgage rates jumped above 6%. Likewise, shares of New York Mortgage Trust Inc (NASDAQ:NYMT) fell 6.7%, MFA Financial Inc (NYSE:MFA) fell 5.3%, and PennyMac Mortgage Investment Trust (NYSE:PMT) fell 2.2%.

More data on the strength of the housing market is expected later this week. On Thursday, data on housing starts come out. Analysts are expecting 1.7 million for May, which would be down from 1.72 million in April.

Related Articles

Real Estate Investments Fall as Mortgage Rates Pop Over 6%

Chipotle Margins Could be Supported by Improving Avocado Supply - Truist Securities

U.S. FDA advisers back authorization of Moderna COVID vaccine for ages 6-17