US Mortgage Market: Demand Drops to Lowest Level in 24 Years, Goldman Sachs Raises Rate Forecast

Mortgage demand has dropped to its lowest level since 1996 as interest rates continue to rise, reaching 7.53% for 30-year fixed-rate mortgages. Total mortgage demand fell 6% compared to the previous week, with applications to refinance dropping 7% and applications for home purchases falling 6%. The purchase market has slowed to its lowest level since 1995, as rising rates have pushed potential homebuyers out of the market. Adjustable-rate mortgage (ARM) applications have increased, accounting for 8% of purchase applications. The average rate on the 30-year fixed mortgage rose to 7.72% this week, driven by better-than-expected economic data.