Mortgage Demand Stalls as Interest Rates Fluctuate

Mortgage demand has reached its lowest level since 1996 as higher mortgage rates continue to impact refinancing. Total mortgage application volume dropped 0.8% last week, with demand for refinances decreasing by 5% compared to the same week last year. Applications for home purchases rose slightly, but were still 27% lower than a year ago. The refinance share of mortgage activity has decreased significantly, from 63% in 2020 to 29.1% currently, as homeowners are less incentivized to sell and buy new homes at higher rates. Mortgage rates remain high, but may be influenced by the release of the monthly Consumer Price Index.