Mortgage applications in the US slump as interest rates skyrocket over 7%

Posted on April 29, 2024   |  

Mortgage rates saw a third consecutive weekly increase, reaching their highest point since November.

This escalation resulted in a 2.7% decrease in mortgage application demand compared to the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 7.24% from 7.13%, with points experiencing a slight uptick.

Refinance applications experienced a 6% decline for the week but remained 3% higher than the same period last year.

Applications for home purchase loans dipped by 1% for the week and showed a 15% decrease from a year ago.

Escalating home prices and interest rates are eroding potential buyers' purchasing power, creating a dual impact on affordability.

In response to these market challenges, the share of adjustable-rate mortgage applications increased to 7.6% last week, providing lower rates but also presenting higher risk.