“Mortgage demand from homebuyers falls 29% since last year, as interest rates surge past 6%”
September 14, 2022
“…“The 30-year fixed mortgage rate hit the 6% mark for the first time since 2008 – rising to 6.01% – which is essentially double what it was a year ago,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
Refinance demand fell another 4% for the week and was 83% lower than the same week one year ago. With rates above 6%, only about 452,000 borrowers could benefit from a refinance, according to Black Knight, a mortgage technology and data provider. That is the lowest number on record. These few remaining candidates could only save about $315 per month per borrower.
Mortgage applications to purchase a home squeezed out a gain of 0.2% from the previous week, but were 29% lower than the same week one year ago. There was a bump up in demand for Veterans Affairs and USDA loans, which are favored by first-time buyers because they can offer low or no down payments…”