Mortgage demand from homebuyers drops to a 28-year low

Mortgage rates moved higher again last week, pushing buyers back to the sidelines just as the spring housing market is supposed to be heating up.

Mortgage applications to purchase a home dropped 6% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 44% lower than the same week one year ago, and is now sitting at a 28-year low.

This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.71% from 6.62%, with points rising to 0.77 from 0.75 (including the origination fee) for loans with a 20% down payment. That is the highest rate since November of last year.

Mortgage rates have moved 50 basis points higher in just the past month. Last February, rates were in the 4% range.

Applications to refinance a home loan fell 6% for the week and were 74% lower year over year.

https://www.cnbc.com/2023/03/01/mortgage-demand-falls-interest-rates-rise.html