Months of steadily increasing mortgage and refinance rates—coupled with the general economic and inflation woes of the moment—have brought financing demand to a new low.
According to the Mortgage Bankers Association, mortgage demand has dropped to its lowest level in 22 years. As of this week, applications for a home purchase mortgage fell 7 percent, week-over-week, but were down 21 percent compared to the same time last year.
Even worse, the demand for refinancing is down 6 percent for the week and down 75 percent year-over-year.
“The purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past two months. These worsening affordability challenges have been particularly hard on prospective first-time buyers,” said MBA economist Joel Kan. “While rates were still lower than they were four weeks ago, they remained high enough to still suppress refinance activity. Only government refinances saw a slight increase last week.”
Be sure to check out our weekly Mortgage Minute feature for a wrap up of the week’s averages, live every Saturday on CaliforniaListings.com