Mortgage demand has taken a hit for the first time in a month, according to the Mortgage Bankers Association’s latest weekly survey.
- Total mortgage demand fell 2.6% from the previous week which drops demand to its lowest point since the end of May.
Across The Board: The drop was widespread, affecting both purchase and refinance applications. Purchase demand fell by 3.3%, while refinance demand decreased by 1.5%, both reaching their lowest levels since late May.
Rates Rise: This decrease in demand is closely linked to a notable rise in interest rates. The average contract interest rate for a 30-year fixed-rate mortgage increased to 7.03% for the week ending June 28th, up 10 basis points from the previous week. This marks the highest level since the end of May.
Bottom Line: The recent uptick in rates comes after a period of relative stability, signaling a shift that has led potential borrowers to hesitate. As rates climb, affordability becomes a more significant issue, impacting the housing market dynamics.
