Mortgage Rates Remain at 23-Year High, Dampening Homebuyer Demand and Possibly Reaching 8% Soon

Mortgage rates jumped to 7.49% this week, remaining at a 23-year high and raising the possibility of hitting 8% soon.

Homebuyer demand dropped to its lowest level since 1996 as rates surged, with purchase applications down 6% last week.

Buyers leaned toward lower-rate options like FHA and ARM loans to find relief from high rates.

Inventory is starting to increase as buyer activity retreats, but prices remain high due to low supply.

If rates hit 8%, the housing market will likely see transactions fall to 2010 levels, becoming a "market of necessity."