At 7.41%, 30-year fixed-rate mortgages have reached their highest level since 2000, resulting in a 27-year low in mortgage demand, CNBC reports. Total mortgage application volume fell by 1.3% last week compared with the previous week, and was down 25.5% year-over-year, according to the Mortgage Bankers Association.
Higher mortgage rates are affecting both prospective homebuyers and homeowners, resulting in fewer applications for refinancing and for home purchase loans.
“Based on the FOMC’s most recent projections, rates are expected to be higher for longer, which drove the increase in Treasury yields,” said Joel Kan, an MBA economist, referencing the Federal Open Market Committee. “Overall applications declined, as both prospective homebuyers and homeowners continue to feel the impact of these elevated rates.”
Advertisement
Related Stories
Financing
Mortgage Rates Continue Third Week of Downward Trend
Thanks to the continued drop in mortgage rates, mortgage applications are up, reaching their highest weekly pace in five weeks
Financing
The Fed Hits Pause on Rate Hikes, but Borrowing Costs Remain High
The Federal Reserve is expected to pause rate hikes, but buyers will continue to feel the sting of elevated borrowing costs for months to come
Financing
What's It Take to Qualify for a Mortgage in the Largest US Metros?
The minimum income needed to qualify for a typical mortgage on a median-priced home has risen higher than ever
