Mortgage Demand Plummets to Lowest Level Since 1996 as Rising Rates Cool Housing Market
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Mortgage applications fell 6% last week to lowest level since 1996 as rates surged to 7.53%, highest since 2000.
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Demand for home purchases dropped 22% from last year as higher rates price out buyers.
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Refinance demand also down 11% versus last year as rates reduce incentive.
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Housing market rapidly cooling due to Fed interest rate hikes aimed at taming inflation.
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Inventory remaining extremely tight, with 45% fewer homes for sale than pre-pandemic due to reluctant sellers.