Geoffrey Smith 

Investing.com – The U.S. market for housing remained stable in March despite rising financing costs due to higher capital costs.

Seasonally adjusted, the monthly gains were 0.3% and 8.9% respectively. They reached 1.793million last year, their highest point since 2006/7’s subprime credit boom. The number of people who have a mortgage has also increased to 1.873 millions. This is an increase of 0.4% over February, and 6.7% for March 2021.

Since the start of the pandemic in the United States, the housing market was one of the most ‘frothy’ areas of the economy. This triggered a sudden shift in the preferences of households for more space than locations within cities and towns.

The pandemic boom has not slowed down and the mortgage cost has increased rapidly in recent months. The Mortgage Bankers Association data shows that the average 30-year mortgage interest rate has increased from 3.30% to 5.13% at the close of the last year, up from 5.30% as of the last week. The benchmark mortgage rate is expected to rise further in coming weeks due to the continued increase in yields on 30-year Treasury bonds.