October 6, 2022: -The highest mortgage rates in more than 20 years coincided with one of the deadliest hurricanes in the United States, contributing to a steep drop in mortgage demand.
Total mortgage application volume decreased 14.2% the previous week compared with the previous week, according to the Mortgage Bankers Association’s seasonally index, to the lowest level since 1997.
The contract interest rate for 30-year mortgages with which confronts loan balances surged to 6.75% from 6.52%, with points coming down to 0.95 from 1.15 for loans with a 20% down payment.
“The current rate has over doubled over the past year and has increased 130 basis points in the previous seven weeks alone,” noted Joel Kan, an MBA economist.
Refinance volume, most sensitive to weekly interest rate moves, dropped 18% this week and was 86% lower than the similar week one year ago. The refinance share of mortgage activity came down to 29% of total applications from 30.2% the last week.
Mortgage applications to buy a home dropped 13% for the week and were steeply 37% lower yearly.
“There was an impact from Hurricane Ian’s arrival in Florida last week, prompting widespread closings and evacuations. Applications in Florida fell 31%, which compares to 14% overall, on a non-seasonally adjusted basis,” Kan added.
With higher interest rates creating an already expensive housing market even more costly, homebuyers turned more to adjustable-rate mortgages, offering a lower interest rate. That share of activity surged to 11.8%, up from 8.5% in the previous month and almost 3% when mortgage rates were below half what they are now.
According to one more survey from Mortgage News Daily, Mortgage rates decreased, but all bets are off when the crucial monthly employment report is released. Depending on how investors view the results and how the Federal Reserve might react, mortgage rates could move decisively in either direction.
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Systems thinking is an approach that focuses on understanding how different parts of a system interact and influence one another within a whole. It is a holistic framework considering interrelationships and patterns rather than static snapshots. By expanding perspectives, systems thinking clarifies complex situations and can spur innovation.
A definite ‘NO’ to the question if struggling families had child care asked by a group of committed volunteers in the San Fernando Valley in 1974, urged the volunteers to look for a way to support families struggling to find quality child care, development, and education services for their families. That year, the San Fernando Valley Child Care Consortium and the Mayor’s Child Care and Junior Task Force proposed the first child care resource center in the San Fernando Valley. Doris McLain was elected chairperson as Mayor Bradley accepted the proposal and gave the newly founded Child Care Resource Center (CCRC) space in Van Nuys City Hall Center. CCRC began 45 years to help working moms find child care.
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