US Markets
Wednesday, September 27th, 2023 2:30 pm EDT
Key Points
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased last week to 7.41%, from 7.31%.
- Applications to refinance a home loan fell 1% for the week and were 21% lower than they were one year ago.
- Applications for a mortgage to purchase a home fell 2% for the week and were 27% lower than the same week one year ago.
Mortgage demand is plummeting as interest rates reach their highest levels in nearly 23 years. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) rose to 7.41%, from 7.31%, causing a sharp decline in mortgage applications. Applications to refinance homes dropped by 1% for the week and were 21% lower than a year ago. Meanwhile, applications for new home purchases fell by 2% for the week and were 27% lower than the same week last year. The historically low supply of homes, combined with rising interest rates and prices, is creating a challenging market for prospective buyers. Even newly built home sales declined by almost 9% in August, hitting their lowest level since March. Higher interest rates, driven by Federal Open Market Committee projections, are impacting both homebuyers and homeowners, and the market faces ongoing uncertainty.
For full article from CNBC, click here: https://www.cnbc.com/2023/09/27/mortgage-demand-shrinks-as-interest-rates-hit-nearly-23-year-high.html
