• 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
  • Blaize partners with Korea Telecom to bring AI transformation to Industrial and Enterprise customers
  • LVMH and Formula One announce 10-year partnership
  • How the Hospitality Industry Can Leverage IoT
  • babyark Launches the World’s Safest Car Seat at the 2023 Consumer Electronics Show
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

Spotify and YouTube raise their premium-service pricing

July 26, 2023

Gap taps top Mattel executive to be its new CEO

July 28, 2023

Novo Nordisk to build $4.1 billion North Carolina facility to...

June 26, 2024

UAW and Ford reach tentative agreement, potentially ending strike at...

October 29, 2023

Driverless cars immune from traffic tickets in California under current...

December 31, 2023

Self-driving Cruise vehicle accused of nearly hitting kids in two...

February 15, 2024

Apple becomes first company to have a market cap topping...

July 4, 2023

Target sales ebb after Pride month shopper backlash; company cuts...

August 17, 2023

How a $5 million fix turned Paramount Pictures’ ‘Sonic’ into...

March 4, 2025

United Airlines CEO responds to string of safety incidents that...

March 21, 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 2,632 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 2,302 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

    Volkswagen recalls 143,000 Atlas SUVs over...

    April 6, 2023

    California jury finds Tesla Autopilot did...

    April 23, 2023

    Darden Restaurants sales disappoint as Olive...

    March 20, 2025
    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