• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Mortgage demand falls to the lowest level since 1995 as interest rates near 8%
Editor's Pick

Mortgage demand falls to the lowest level since 1995 as interest rates near 8%

by October 20, 2023
by October 20, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Mortgage rates last week rose for the sixth straight week, causing demand for home loans to drop to the lowest level since 1995.

Total application volume fell 6.9% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

A for sale sign in San Mateo County, Calif., on Aug. 22, 2023.Liu Guanguan / China News Service via Getty Images file

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.70% from 7.67% and points decreased to 0.71 from 0.75 (including the origination fee) for loans with a 20% down payment. That is the highest rate since November 2000. The rate was 6.94% during the same week one year ago.

Applications for a mortgage to purchase a home dropped 6% week to week and were 21% lower than the same week one year ago.

Applications to refinance a home loan fell 10% for the week and were 12% lower than a year ago.

“Both purchase and refinance applications declined, driven by larger drops for conventional applications,” said Joel Kan, vice president and deputy chief economist at the MBA, in a release. He added that the adjustable-rate mortgage (ARM) share was 9.3%, the highest share in 11 months.

ARMs offer lower rates and can be fixed for up to 10 years before the rate resets. More borrowers are turning to these loan products to gain purchasing power, as both interest rates and home prices are rising.

More from CNBC

Morgan Stanley tops profit estimates on better-than-expected trading results Apple supplier Foxconn says it’s ‘way too late’ to chase dominance in cutting-edge chips Roblox tells employees they have to come to office three days a week or take a severance package

Mortgage rates moved even higher to start this week, with the 30-year fixed hitting 7.92% on Tuesday, according to Mortgage News Daily. That is a cyclical high. The increase was due to a much stronger-than-expected monthly retail sales report.

This post appeared first on NBC NEWS
You Might Also Like
  • Last tot standing: Buybuy Baby likely to survive as Bed Bath & Beyond fades into bankruptcy
  • Amazon Web Services CEO Adam Selipsky to step down
  • Smucker agrees to buy Twinkie maker Hostess Brands for $5.6 billion
  • PepsiCo buys prebiotic soda brand Poppi for nearly $2 billion
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Make sponsors of terrorism like Iran pay for their crimes — literally
next post
House may hold third-round speaker vote today, but path to a majority is rocky

You may also like

Americans grow more confident about the economy, even as the...

January 11, 2024

Tesla reports 336,000 vehicle deliveries in first quarter, 13% drop...

April 2, 2025

Boeing delivered 30 airplanes in December, but gap with Airbus...

January 14, 2025

Amazon is raising free-shipping minimums for some customers who don’t...

August 31, 2023

If you haven’t started your Thanksgiving trip, you’re not alone....

November 28, 2023

Student loan repayment issues frustrate borrowers, prompting federal response

January 6, 2024

Extreme heat is changing where and when we vacation

July 8, 2024

Biden to launch task force to crack down on ‘unfair...

March 7, 2024

Why the LA Rams are worth $2 billion more than...

September 6, 2024

Thousands of Southern California hotel workers begin strike

July 3, 2023

    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

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

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

      June 27, 2024 2,919 views
    • 3

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

      August 9, 2024 2,607 views
    • 4

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

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,450 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

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

      June 25, 2024
    • 2

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

      June 27, 2024
    • 3

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

      August 9, 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

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    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

    ‘Nobody imagined it would go on...

    May 24, 2023

    Ikea says products will be delayed...

    December 22, 2023

    GM ditching ‘Ultium’ name for batteries...

    October 10, 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