Mortgage demand declines as interest rates climb


    Recent increases in mortgage interest rates have led to a notable decline in demand from both homebuyers and homeowners, CNBC reports.

    According to the Mortgage Bankers Association, total mortgage application volume fell by 5.1% last week. 

    The average contract rate for 30-year fixed-rate mortgages rose to 6.36%, the highest level since August, driven by strong economic data and a robust September jobs report. 

    Refinancing applications dropped 9% for the week but remain 159% higher than last year. Purchase mortgage applications saw a minor decline of 0.1%, although demand is 8% higher compared to the same week in 2023.

    Following the employment report, rates surged further, with the average for a 30-year fixed mortgage now at 6.62%. 

    While mortgage rates are lower than a year ago, home prices are higher. Inventory has improved, but there is still not enough for sale on the more affordable end of the market.

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