According to CryptoBriefing, the average rate on a 30-year fixed-rate U.S. mortgage has climbed to 6.81%, which marks the highest level reached so far this year. In the same weekly reading, total mortgage application volume declined by 6.4%. Refinancing activity also moved lower, falling 10% for the week. Most homeowners who locked in mortgage rates below 5% between 2020 and 2022 now have little incentive to refinance, given that current rates are higher. The report also covers a crypto mortgage pilot from Coinbase and Better Home. In that pilot, borrowers are allowed to pledge digital assets as collateral for a down payment. The interest rate on the pilot product comes in 0.5 to 1.5 percentage points above a standard mortgage. That higher rate partly offsets the benefit of avoiding capital gains tax on digital assets. Overall, the pilot has not yet had any significant impact on broader mortgage trends, according to the report.
Mortgage Rates Hit New Annual High
U.S. mortgage rates have climbed to their highest point of the year. The average rate on a 30-year fixed-rate loan hit 6.81%, and mortgage applications declined 6.4% from the prior week, according to CryptoBriefing. Refinancing activity fell 10% this week, with most homeowners who locked in rates below 5% between 2020 and 2022 seeing little reason to refinance.
Crypto Mortgage Pilot Offers a Workaround
Meanwhile, Coinbase and Better Home are testing a crypto mortgage pilot that allows borrowers to pledge digital assets as collateral for a down payment. The rate on that product runs 0.5 to 1.5 percentage points higher than a conventional loan. It offers a way to avoid capital gains tax on digital assets, though the higher rate partly offsets that tax benefit. The pilot has not yet had a noticeable effect on overall mortgage trends.
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