Mortgage Demand Plummets as Interest Rates Soar to 23-Year Highs

Mortgage demand has plummeted as interest rates reach their highest level since 2000. Total mortgage application volume fell 1.3% compared to the previous week and is now near a 27-year low. The average contract interest rate for 30-year fixed-rate mortgages increased to 7.41%, while the 30-year fixed jumbo mortgage rate reached 7.34%, the highest in MBA's history. Applications for both home purchases and refinancing declined, with potential buyers facing a shortage of homes for sale, rising interest rates, and increasing prices. The supply and demand imbalance is pushing prices higher despite affordability challenges for buyers.