Demand for Mortgages Drops to Nearly 3-Decade Low

Demand for Mortgages , Drops to Nearly , 3-Decade Low.
NBC reports that mortgage rates rose even
higher last week at a time when the spring
housing market is typically heating up.
Mortgage applications
for new homes dropped six percent
compared to the previous week. .
According to the Mortgage Bankers Association's
seasonally adjusted index, volume was 44% lower
than the same time in 2022, reaching a 28-year low. .
Meanwhile, average contract interest rates
on 30-year fixed-rate mortgages increased
to 6.71% with a 20% down payment. .
NBC reports that this
is the highest rate
since November of 2022.
In just the last month, mortgage rates
have climbed 50 basis points higher. .
Data on inflation, employment,
and economic activity have signaled
that inflation may not be cooling as
quickly as anticipated, which continues
to put upward pressure on rates, Joel Kan, MBA economist, via NBC.
Refinance applications account for less
than a third of all applications and remained
more than 70% behind last year’s pace,
as a majority of homeowners are
already locked into lower rates, Joel Kan, MBA economist, via NBC.
NBC reports that mortgage rates appear
to be on a trajectory to continue rising
despite a brief respite in January.
Current mortgage demand from
homebuyers would seem to indicate
a slow spring ahead for the housing market