Mortgage demand plummets as high rates squeeze buyers
The Mortgage Bankers Association's index of mortgage applications fell to its lowest level since 1996 as consumer demand cooled due to a surge in mortgage rates and low housing inventory.
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Posted 9/6/2023, 5:03:18 PM
foxbusiness.com
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US mortgage applications for home purchases fell to their lowest level in 28 years, while refinancing also declined, as mortgage rates reached a 23-year high, according to data from the Mortgage Bankers Association.
The Consumer Confidence Index fell in August due to higher gas prices and concerns about inflation, leading to a decrease in consumer spending and potential implications for the US economy.
The average long-term U.S. mortgage rate dropped slightly after five consecutive weeks of increases, providing some relief to homebuyers facing high home prices and limited inventory.
Mortgage rates have been decreasing and could fall further this month if inflation continues to come down.
Demand for mortgages in the US has hit a 28-year low, with purchase applications falling to the lowest level since December 1996, despite a decrease in mortgage rates.
Mortgage application volume declined to its lowest level since December 1996, despite a slight decrease in mortgage interest rates, due to high rates compared to a year ago and low housing inventory.
The gauge of US mortgage applications for home purchases fell to a 28-year low last week due to high mortgage rates, making homeownership less affordable and driving housing affordability to its worst point in decades.
Rates on 30-year mortgages have decreased, reaching their lowest point since September 1st, after dropping nearly a quarter percentage point from their 22-year high recorded last week.
U.S. homebuilder confidence fell to its lowest level since April in September due to high interest rates, leading to decreased affordability for buyers and a decline in demand for new home construction.
US housing starts fell to their lowest level in three years, indicating a slowdown in homebuilding activity due to mortgage rates lingering above 7%.