Mortgage demand in the US has dropped by 7.7% due to rising mortgage rates.
According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume fell compared to the previous week.
The average rate on the 30-year fixed conforming loan balance increased from 6.18% to 6.39%, a significant jump from the same week one year ago.
Refinancing applications dropped by 13% and were 76% lower than the same week last year.
Real estate agents have noted an increase in buyer demand, but a shortage of available properties on the market has led to a rise in cash buyers.
Mortgage applications for home purchases fell 6% for the week and were 43% lower than the same week in the previous year.
There are concerns that many people with adjustable mortgage rates may be impacted by the current situation.