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Mortgage Rates Surge Higher, Pushing Home Buyers to Sidelines Ahead of Spring Market

ByAlki David

Mar 3, 2023

The spring housing market is typically the busiest time of year for homebuyers, but rising mortgage rates are causing some to put their search on hold. According to the Mortgage Bankers Association, mortgage applications for home purchases fell 6% last week compared to the previous week, and volume was down 44% from the same time last year. This marks a 28-year low, as potential buyers struggle to find affordable loans amidst the recent surge in rates.

The average interest rate for a 30-year fixed-rate mortgage with a conforming loan balance rose to 6.71% last week, up from 6.62%. This marks the highest rate since November of last year, and the trend shows no signs of slowing down. In just the past month, rates have increased by 50 basis points, compared to last February when rates were in the 4% range.

Economists say that rising inflation and economic activity are causing rates to go up faster than anticipated. “Data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates,” said Joel Kan, an MBA economist.

The rise in rates is also impacting homeowners who are looking to refinance. Refinance applications fell 6% last week and were 74% lower than the same time last year. “Refinance applications account for less than a third of all applications and remained more than 70% behind last year’s pace, as a majority of homeowners are already locked into lower rates,” added Kan.

The housing market has been booming for the past year, but the recent surge in rates is causing some buyers to think twice before making a purchase. The situation is especially challenging for those looking to buy a home with a lower down payment, as they are more likely to be impacted by the rise in rates. As the market heads into the spring season, it remains to be seen whether rates will continue to rise or stabilize, but for now, potential homebuyers are feeling the squeeze.

By Alki David

Alki David — Publisher, Media Architect, SIN Network Creator - live, direct-to-public communication, media infrastructure, accountability journalism, and independent distribution. Born in Lagos, Nigeria; educated in the United Kingdom and Switzerland; attended the Royal College of Art. Early internet broadcaster — participated in real-time public coverage during the 1997 Mars landing era using experimental online transmission from Beverly Hills. Founder of FilmOn, one of the earliest global internet television networks offering live and on-demand broadcasting outside legacy gatekeepers. Publisher of SHOCKYA — reporting since 2010 on systemic corruption inside the entertainment business and its expansion into law, finance, and regulation. Creator of the SIN Network (ShockYA Integrated Network), a federated media and civic-information infrastructure spanning investigative journalism, live TV, documentary, and court-record reporting. Lived and worked for over 40 years inside global media hubs including Malibu, Beverly Hills, London, Hong Kong and Gstaad. Early encounter with Julian Assange during the first Hologram USA operations proved a formative turning point — exposing the realities of lawfare, information suppression, and concentrated media power. Principal complainant and driving force behind what court filings describe as the largest consolidated media–legal accountability action on record, now before the Eastern Caribbean Supreme Court. Relocated to Antigua & Barbuda and entered sustained legal, civic, and informational confrontation over media power, safeguarding, and accountability at Commonwealth scale.