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March Homes Sales Fell 3.6%, Signaling a Poor Start to Spring Season
Influenced by the situation in the Middle East, U.S. mortgage rates surged to 6.57%, hitting a seven-month high, leading to a significant contraction in refinancing activities.
Inflation concerns triggered by the conflict in Iran have driven up U.S. Treasury yields, which are closely linked to mortgage rates. U.S. mortgage rates have risen for four consecutive weeks, with the 30-year fixed mortgage contract rate climbing 14 basis points to 6.57% as of March 27, reaching its highest level since last August. Refinancing applications plummeted 17.3% in a single week, while the MBA Purchase Mortgage Application Index recorded declines for two consecutive weeks.
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