U.S. mortgage applications tumble last week - MBA

[progree]

1. Coupled with a 18% increase in house prices, that comes to a 33.5% higher P&I payment

Last edited Wed Feb 23, 2022, 01:51 PM - Edit history (1)

compared to a year ago --

https://finance.yahoo.com/news/stock-market-news-live-updates-february-23-2022-231403641.html

The 30-year fixed rate was 4.06%, almost a full percentage point higher than a year ago

So on a $300,000 home, a 4.06% rate would come to a $1,443/month P&I payment

While a 3.06% rate would come to $1,275 month

So a $168/month increase, which is a 13.2% increase in the P&I payment

Though it says "almost a full percentage point" so it isn't quite that much. Yet.

Edited to add

Now if the average house went up by 18% over the past year, based on the Case Shiller National index (it was actually 18.8%)),

the P&I payment would increase by another 18%: 1,443 * 1.18 = $1,703

for a total of $428 more per month, an increase of 33.5% over the $1,275/mo payment.

That qualifies as jumping and soaring. It is scary.

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Also from the link above in news related to higher mortgage rates:

Refinances fell by 16% over last week, and by a marked 56% compared to the same week last year.

Purchases, meanwhile, fell 10% on a week-on-week basis, when adjusted for seasonality. Compared to the same period last year, purchases were down by 6%, not seasonally adjusted.