Mortgage demand takes major plunge as interest rates top 7% again
NY Post
Mortgage demand took a massive hit last week, with application volume down a whopping 10.6% compared with the previous week as interest rates surged over 7% — their highest level since early December.
According to the Mortgage Bankers Association’s seasonally adjusted index for the week ended Feb. 16, the average contract interest rate for a 30-year fixed-rate mortgage with a $766,550 loan limit was 7.06% — up from 6.87% the week prior.
Borrowing rates on loans greater than $766,550 advanced from 7% to 7.16%, according to the MBA’s index, which was earlier reported on by CNBC.
As a result, applications for mortgages to purchase a new home fell more than 10% — roughly 13% lower than the same week last year and the lowest level since early November 2023, according to CNBC.
For reference, in the year-ago period, the 30-year fixed rate was 6.62%.
As recently as December, the figure dipped below 7% — welcome news to prospective homebuyers who have largely been held back by higher borrowing costs and heightened competition for relatively few homes for sale.
