Jim Cramer: Mortgage Rates Show 'Counter Urban Trade'

Here's what Jim Cramer thinks about mortgage rates.
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Let's go over housing.

U.S. Mortgage rates edged modestly higher last week, but remain within touching distance of their all-time lows as data suggests U.S. house prices held their ground amid the worst of the coronavirus pandemic.

The Mortgage Bankers Association said 30-year fixed rates for conforming loan balances of less than $510,400 edged 1 basis point higher to 3.42% for the week ending May 22, just above the record low of 3.40% from earlier this week and a full 1% lower from the same period last year. 

“The home purchase market continued its path to recovery as various states reopen, leading to more buyers resuming their home search. Purchase applications increased 9% last week – the sixth consecutive weekly increase and a jump of 54 percent since early April. Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March,” said the MBA's associate vice president of economic and industry forecasting Joel Kan. 

Jim Cramer thinks that this is a "counter urban" trade, where more people are moving out of urban centers following the pandemic.

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