U.S. Homebuyers Are Getting Discouraged by Rising Rates and Prices

Reuters

Soaring interest rates weigh on big bank mortgage loan growth

NEW YORK/WASHINGTON (Reuters) -With soaring interest rates scaring off would-be mortgage borrowers, the outlook for banks’ home lending portfolios is gloomy, according to first quarter filings and analysts. The average interest rate on a 30-year fixed-rate mortgage, the most popular home loan, rose to 5.13% in the week ended April 8, the highest since November 2018, according to data from the Mortgage Bankers Association (MBA). While rate rises can be good for bank profits, the surge in borrowing costs is dampening demand for mortgage originations, according to MBA data and bank executives.