Mortgage Demand , Sinks to 22-Year Low.
CNBC reports that according to the Mortgage Bankers Association.
Mortgage demand dropped over 6% last week compared to the prior week.
That is reportedly the lowest level since 2000.
Mortgage applications fell 7% for the week and were 19% less compared to a year ago.
CNBC reports that buyers have lost purchasing power as rates are nearly double what they were at the beginning of 2022.
Purchase activity declined for both conventional and government loans as the weakening economic outlook, high inflation and persistent affordability challenges are impacting buyer demand, Joel Kan, an economist for the MBA, via CNBC.
The average interest rate for a 30-year fixed-rate mortgage rose to 5.82%, while refinance demand fell 4% for the week and 80% compared to last year.
CNBC reports that the Federal Reserve is expected to increase rates next week by an additional 75 basis points as part of its ongoing efforts to fight inflation.
.
CNBC reports that the Federal Reserve is expected to increase rates next week by an additional 75 basis points as part of its ongoing efforts to fight inflation.
.
This is especially true next week as markets digest the newest Fed policy announcement next Wednesday, but Thursday’s policy announcement from the European Central Bank could also cause enough of a stir to impact U.S. rates, Matthew Graham, chief operating officer of Mortgage News Daily, via CNBC
