Demand for mortgages has fallen to a multi-decade low amid rising interest rates that have hit record levels, according to the Mortgage Bankers Association (MBA).
MBA’s Market Composite Index, which measures the volume of loan applications, fell 4.5 percent for the week ending Oct. 14 from a week earlier on a seasonally adjusted basis, an Oct. 19 press release from the organization states. Mortgage applications have fallen for four straight months, with the current level being the lowest since 1997.
On a yearly basis, purchase and refinance applications are down 38 percent and 86 percent respectively. The decline in mortgage demand has happened as 30-year fixed mortgage interest rates hit 6.94 percent, the highest since 2002, and three percentage points higher than a year back….