Mortgage Demand Plummets to Lowest Since 1996 as Rate Nears 8%

Mortgage rates soared last week, leading to a 6% decrease in mortgage demand, hitting its lowest point since 1996, according to the Mortgage Bankers Association. The 30-year fixed-rate mortgage interest surged to 7.53%, up from 6.75% a year ago. Consequently, applications to refinance homes dropped 7% and purchase applications fell 6%, marking a 22% decline from the previous year. The spike in rates is discouraging potential homebuyers, and while adjustable-rate mortgage applications rose, overall confidence in the mortgage market is dwindling