Mortgage Demand Slumps as Rates Reach New High

Interest rates hit their highest point since December 2023, leading to a decrease in both home purchase and refinance applications.

Mortgage demand falls as interest rates hit their highest level since December 2023, with the average rate on a 30-year loan rising to 6.87%.
The Federal Reserve's aggressive rate hikes in the past two years have cooled the housing market, with officials signaling a pause in rate increases.
Home purchase applications dropped 3% from the previous week, and application volume is down 12% compared to last year.
Refinance applications also declined, falling 2% from the previous two weeks, despite being 12% higher than the same time last year.
Stubborn inflation and the anticipation of Federal Reserve policy adjustments have pushed back expectations for lower mortgage rates.