Mortgage demand from homebuyers fell for the sixth straight week to the lowest level in 28 years as mortgage rates climbed to a 23-year high last week, according to Mortgage News Daily.
The Mortgage Bankers Association’s (MBA) seasonally adjusted index, meanwhile, showed a 4.2% week-over-week drop in total mortgage application volumes.
Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.31% from 7.16%, the highest level since 2000, CNBC reported.
The media outlet noted that potential buyers are dealing not only with high interest rates and high prices but extremely low supply.
As well, MBA's Refinance Index decreased 6% from the prior week and was 35% lower as compared with the same period in 2022.
The MBA's survey covers 75% of all US retail residential mortgage applications, and it's been conducted every week for over 30 years.
On Tuesday, the National Association of Realtors released data showing that existing home sales fell 2.2% in July, the lowest level since the start of 2023.
Contact Sean at sean@proactiveinvestors.com