New data shows mortgage rates are at their highest level since November of 2014, and applications are rising. Bobbi Rebell reports.
The strong job gains in May, and the higher paychecks that more Americans are getting, are now flowing into the housing market. Mortgage applications are on the rise, up eight percent in the week ended June 5th, according to the Mortgage Bankers Association. Rates climbing too... now averaging 4.17 percent, the highest since November 2014. U.S. Bank's Eric Wiegand. SOUNDBITE: ERIC WIEGAND SENIOR PORTFOLIO MANAGER, U.S. BANK (ENGLISH) SAYING: "What really is encouraging, is the overall level of activity. Consumers have been a mystery for many of us on the investment side. We have been looking for them as we've seen wages grow, we've seen employment grow, and we've actually seen this dividend from lower fuel prices, but we had yet to see an outlet for the consumer, and it does appear that we are beginning to see that in the housing market." Also helping to drive demand: millennials. Dottie Herman is the President and CEO of Douglas Elliman: SOUNDBITE: DOTIE HERMAN, CEO, DOUGLAS ELLIMAN (ENGLISH) SAYING: "Rents across the U.S. are rising. The oldest millennial is about 34, 35, around that age. So, the oldest millennials are starting to have families, they are getting married, the job market is better. They had to take a hiatus and maybe live with their parents for longer, because we were in the rescission when some of them got out of school, and they had a lot of student debt, but, now, the oldest ones are ready, and they do believe in home ownership." Herman adds, many new buyers can now qualify for a lower down payment, which can help get them into the market.