• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years
Editor's Pick

Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years

by September 29, 2023
by September 29, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Mortgage interest rates just hit a level not seen since the year 2000. As a result, mortgage demand is now sitting near a 27-year low.

Total mortgage application volume fell 1.3% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 25.5% lower than the same week one year ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.41%, from 7.31%, with points decreasing to 0.71 from 0.72 (including the origination fee) for loans with a 20% down payment. The rate was 6.52% one year ago.

The 30-year fixed jumbo mortgage rate increased to 7.34%, the highest rate in the history of the MBA’s jumbo rate series dating back to 2011.

“Based on the FOMC’s most recent projections, rates are expected to be higher for longer, which drove the increase in Treasury yields,” said Joel Kan, an MBA economist, referencing the Federal Open Market Committee. “Overall applications declined, as both prospective homebuyers and homeowners continue to feel the impact of these elevated rates.”

Applications to refinance a home loan fell 1% for the week and were 21% lower than they were one year ago. After record low interest rates throughout the first few years of the pandemic and a refinance boom, there are precious few borrowers now with mortgage rates high enough to benefit from a refinance.

Applications for a mortgage to purchase a home fell 2% for the week and were 27% lower than the same week year over year.

Potential buyers are facing an unprecedented dynamic of a historically low supply of homes for sale, coupled with both rising interest rates and rising prices. Higher interest rates historically throw cold water on home prices, but the supply and demand imbalance is so severe that it is pushing prices higher even though more and more buyers are unable to afford a home.

More from CNBC

Copper is critical to energy transition. The world is falling way behind on producing enough ‘Rental recession’: London office vacancies hit 30-year high Las Vegas hospitality workers overwhelmingly permit union to call strike against hotels, casinos

Interest rates continued to move higher this week, according to a separate survey from Mortgage News Daily. Even sales of newly built homes, which had been rising due to the short supply on the resale market, took a hit in August, according to another report this week. Sales dropped nearly 9% in August from July’s pace, hitting the lowest level since March.

This post appeared first on NBC NEWS
You Might Also Like
  • ESPN hopes to reach more casual sports fans with Disney+ integration
  • Doritos severs ties with transgender influencer in Spain following online boycott threat
  • Digital health companies got pummeled by Wall Street in 2024 as industry adapts to post-Covid slowdown
  • All Quiksilver, Billabong and Volcom stores to close in U.S.
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Democrats decry House impeachment hearing of Biden: ‘Waste of time’
next post
Comer subpoenas personal, business bank records for Hunter Biden, James Biden as part of impeachment inquiry

You may also like

Polls say older voters want Social Security protections. Yet parties...

June 24, 2024

Boeing CEO, other executives stepping down amid safety crisis

March 26, 2024

Women’s college basketball final expected to set new viewership records...

April 6, 2024

Disney says about 157 million global users are streaming content...

January 10, 2025

Boeing machinists on picket lines prepare for lengthy strike: ‘I...

September 24, 2024

Sam Altman tells OpenAI staff there’s no plan for him...

September 30, 2024

McDonald’s $5 value meal is coming in June — and...

May 17, 2024

Regulators caught Wells Fargo, other banks in probe over mortgage...

December 13, 2023

Disney touts $40 billion economic impact in Florida as it...

November 17, 2023

Fed minutes point to ‘likely’ rate cut coming in September

August 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,633 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    ‘Moana 2’-led Thanksgiving box office could...

    November 27, 2024

    IoT Analytics: 5 IoT sensor technologies...

    January 17, 2023

    Kohl’s CEO Tom Kingsbury to step...

    November 26, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here