Rising mortgage rates: how consumers are responding

According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume dropped 5.6% last week from the previous week. The average 30-year mortgage rate continues to float above 7%, disincentivizing potential homebuyers.

Taylor Morrison (TMHC) CEO Sheryl Palmer joins Yahoo Finance to discuss how the housing market has dealt with the volatile rates.

Palmer suggests consumer tolerance is growing: “The consumers have come a long way in the last year, 18 months, when rates were flirting at the 7%. The difference from where we are today to where we were then is, back then they were still hoping rates would go back to 4%. I think the consumer has met us kind of in the middle, recognizing that rates in the fives or sixes is actually, from any kind of long-term historic perspective, a really good rate.”

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Editor’s note: This article was written by Nicholas Jacobino