With interest rates on the rise, the demand for mortgages is declining at a rate of 29% less than last year. We’ll be referencing this article from CNBC.
According to the Mortgage Bankers Association’s seasonally adjusted index, application volume dropped 1.2% last week compared with the previous week.
Since last year, homebuyers’ demand for mortgages has fallen by nearly a third.
Refinance demand also declined as rates surged on hawkish messages from the Federal Reserve.
With rates above 6%, only about 452,000 borrowers could benefit from a refinance. That is the lowest number on record. These few remaining candidates could only save about $315 per month per borrower.
Mortgage applications to purchase a home squeezed out a gain of 0.2% from the previous week but were 29% lower than the same week one year ago.