Mortgage demand drops more than 10% as rates hit the highest level since October
CNBC • • business
Key Points:
- Mortgage rates rose to 6.43%, the highest level since last fall, causing total mortgage application volume to drop 10.5% last week, according to the Mortgage Bankers Association (MBA).
- The average rate for 30-year fixed mortgages increased from 6.30% to 6.43%, with points rising slightly, driven by elevated Treasury yields linked to concerns over prolonged high oil prices.
- Refinance demand fell 15% last week but remained 52% higher than the same period a year ago; however, the refinance share of mortgage activity decreased to 49.6% from 60% in mid-January.
- Mortgage applications for home purchases declined 5% for the week and were only marginally higher than the previous year, as higher rates, affordability issues, and economic uncertainty deterred some buyers.
- Political tensions and military activity have caused volatility in mortgage rates, and experts warn that inflation and interest rates are unlikely to return quickly to February levels even if conflicts end due to lasting economic disruptions.
