The Daily Money: Higher mortgage rates hinder affordability
It's Amanda Pérez Pintado here to bring you Tuesday's top Daily Money headlines.
Times have been tough for homebuyers.
Mortgage rates declined earlier this year, but the relief was short-lived and rates are now creeping up toward 7%. The average rate on a 30-year fixed-rate mortgage has reached 6.65%, according to the Mortgage Bankers Association.
As mortgage rates jump, hindering affordability, applications have declined. Volume for mortgage applications to purchase a home was 44% lower than the same week one year ago as homebuyers again retreat to the sidelines, according to data from the Mortgage Bankers Association.
Auto loan delinquencies are up
Borrowers with low credit are falling behind on car loans as consumers feel the pinch of inflation and the end of pandemic aid.
In January, 1.89% of delinquent auto loans were "severely delinquent" and were at least 60 days past due, the highest rate since 2006, according to Cox Automotive.
The share of payments on subprime loans– which are typically offered to people with lower credit scores and have high interest rates– that were at least 60 days late reached more than 6% by the end of 2022, according to S&P Global Ratings.
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About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.