By Zachary Halaschak | Washington Examiner
Mortgage applications have fallen to the lowest level in some 27 years as homebuyers shy away from rising mortgage rates that have hit highs not seen since the turn of the century.
Mortgage loan application volume decreased by 6% last week on a seasonally adjusted basis, according to a Wednesday report from the Mortgage Bankers Association.
“[M]ortgage applications grounded to a halt, dropping to the lowest level since 1996,” said Joel Kan, MBA’s vice president and deputy chief economist. “The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market.”
The volume of refinances dropped by 7% during that same time and is 22% lower than this time last year, according to the group’s weekly survey.
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