Mortgage Rates Creep up to 7-Year High

Mortgage Applications Stay Flat Amid Rising Rates

After the financial crisis and subprime mortgage collapse, home prices took an unceremonious fall as millions of homes faced foreclosure and were sold at heavily-discounted prices. Home prices hit a floor around 2012 and began to recover at accelerated levels, pricing out many prospective homebuyers.

The national median home price jumped from $252,000 in the first quarter of 2018 to $265,000 in the second quarter — the highest quarterly median price in the history of the HOI series.

“The recovery in housing has been really slow to get back on track,” said Mark Vitner, managing director and senior economist at Wells Fargo Securities. “The numbers are all moving in the right direction, but they’re not moving there very quickly and I don’t think that’s going to change all that much.”

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