Mortgage demand plunges as interest rates rise
Boston Condos for Sale and Apartments for Rent
Mortgage demand plunges as interest rates rise
Updated: Boston Real Estate Blog 2024
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Mortgage demand plunges as interest rates rise
- Rising interest rates had a direct impact on mortgage demand, which had been rising for several weeks.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.85% from 6.75%
- Mortgage demand to purchase a home, which had been rising for three straight weeks, dropped 5% for the week.
Mortgage rates last week hit their highest level since the end of May, which in turn weighed on mortgage demand.
Total mortgage application volume dropped 4.4% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand is now at its lowest level in a month.
While that was the average rate for the week, a separate survey from Mortgage News Daily showed the rate crossed over 7% last Thursday. It has remained above that mark since then, rising to 7.08% on Tuesday of this week.
As a result, mortgage demand to purchase a home, which had been rising for three straight weeks, dropped 5% for the week and was 22% lower than the same week one year ago.
Source: CNBC Real Estate
Updated: Boston Real Estate Blog 202
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My thoughts on the Boston condo for sale market
The drop in mortgage demand will probably be reflected in low Boston condo-for-sale numbers next month.
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