2023-10-08 12:00:09
The interest rate applied to the mortgage loans at a fixed rate and a term of 30 years has stood at 7.53% last week, its highest level since 2000, while the demand for mortgages for the purchase of homes sank to its lowest level since 1996, according to the data of the Mortgage Bankers Association (MBA).
“Mortgage rates continued to rise last week as markets digested the recent rally in Treasury yields,” said Joel Kan, vice president and deputy chief economist at MBA.
Thus, the rates of all mortgage products increased during the past week, raising the 30-year fixed mortgage rate for the fourth consecutive week, up to 7.53% from 7.41% the previous week and the 6th. 75% from a year before.
“As a result, mortgage applications ground to a halt, falling to the lowest level since 1996,” Kan added, underscoring that the purchasing market slowed to the lowest level of activity since 1995, as rapidly rising rates drove an increasing number of potential home buyers out of the market.
#mortgage #rate #sinks #demand #mortgages