Home » Economy » Mortgage demand plummets as interest rates hover near 13-year high
Mortgage demand plummets as interest rates hover near 13-year high
Mortgage rates hit 5% for first time since 2011
Structured Finance Association CEO Michael Bright weighs in as home prices skyrocket across the nation on ‘Fox Business Tonight.’
Homebuyer demand for mortgages tumbled last week as the average interest rate on the most popular U.S. home loan hovered near a 13-year high, a sign the red-hot housing market may be starting to cool off, according to new data from the Mortgage Bankers Association.
Mortgage applications to purchase a home dropped 12% on a weekly basis and are down 15% compared with the same week one year ago. It marked the first time in three weeks that monthly mortgage demand fell.
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Although mortgage rates have receded slightly from the record high notched last week, the average rate on the 30-year loan is still around 5.378%. By comparison, just one year ago, the 30-year rate stood at 3.00%. Since the start of the year, rates have jumped 2% – the fastest pace of growth since May 1994.