flexiblefullpage - default
Currently Reading

Mortgage Demand Plunged at the Close of 2022 as Interest Rates Inched Higher

billboard - default

Mortgage Demand Plunged at the Close of 2022 as Interest Rates Inched Higher

Mortgage application volume posted a double-digit decline during the last week of 2022 as interest rates climbed toward 7% after falling two weeks prior

January 4, 2023
Red and white sale sign outside of residential house
Image: Stock.adobe.com

Mortgage application volume dropped 13.2% at the end of last week from two weeks prior as the average contract interest rate for 30-year fixed-rate mortgages with conforming balances of $647,200 or less rose from 6.34% to 6.58%, according to the Mortgage Bankers Association’s seasonally adjusted index. 

Refinancing demand dropped 16.3% from two weeks earlier and was down 87% from the same period in 2021, while mortgage applications to purchase a home ended the year at their lowest level since 1996, CNBC reports.

“Mortgage rates are lower than October 2022 highs, but would have to decline substantially to generate additional refinance activity,” noted Joel Kan, an MBA economist.

“Purchase applications have been impacted by slowing home sales in both the new and existing segments of the market. Even as home-price growth slows in many parts of the country, elevated mortgage rates continue to put a strain on affordability and are keeping prospective homebuyers out of the market,” said Kan, who also pointed to the threat of a wider economic recession.

Read more

leaderboard2 - default

Related Stories


Atlanta Urban Infill Project Innovates With Off-Site Methods

Clayton's CrossMod homes in Atlanta show how combining off-site construction with flexible urban zoning policies could move the needle for affordable housing


San Diego to Provide $15.4M in Gap Financing for Low-Income Apartments

The financing will help make five low-income housing projects financially feasible, providing 400 units, 96 of which will be for the formerly unhoused


Maryland Announces $400M Housing Bond to Support Affordable Homeownership

Maryland Governor Wes Moore announced news of the Maryland Department of Housing and Community Development's recent mortgage revenue bond—the largest in the agency's history

boombox1 -
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.