HomeReal EstateMortgage Nightmare: Interest Rates Crush Homeownership Dreams - Don't Be the Next...

Mortgage Nightmare: Interest Rates Crush Homeownership Dreams – Don’t Be the Next Victim


7% interest rates hit weekly mortgage demand hard


Mortgage rates have ticked down slightly to 7.04% for 30-year fixed loans.

However, demand for both home purchases and refinancing has dropped significantly in recent weeks.

Potential homebuyers are facing challenges as mortgage rates are still well above last year’s levels and existing homes remain scarce on the market.

The increase in mortgage rates has particularly affected low-income borrowers who typically use FHA or VA loans.

Despite a slight increase in demand for new home mortgages, the overall mortgage application volume has declined.

Experts emphasize that the lack of available existing homes for sale continues to hinder the growth in home purchases.

  • Overall sentiment: negative
  • Positive

    “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.04% from 7.06%.”

    “Mortgage rates moved higher again to start this week, according to a separate survey from Mortgage News Daily. The 30-year fixed is now matching the highest level since early December 2023.”


    “Applications to refinance a home loan were 7% lower than the previous week and were 1% lower than the same week one year ago.”

    “Applications for a mortgage to purchase a home dropped 5% for the week and were 12% lower than the same week one year ago.”

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