Mortgage Demand Declines As Interest Rates Go Up

    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.

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