Mortgage rates have climbed to 6.62%, moving closer to 7% than 6% as geopolitical tensions escalate with the Iran conflict. The rate increase marks a significant jump from sub-6% levels recorded earlier.
Purchase applications have responded to the rate environment with a 5% decline, while overall growth has slowed to 5% according to recent market data.
The Federal Housing Finance Agency's government-sponsored enterprises, Fannie Mae and Freddie Mac, have increased their activity in the mortgage-backed securities market in recent weeks. However, their purchasing approach appears more measured and opportunistic than market participants initially anticipated.