Homebuyer Mortgage Demand Drops 19% as 30-Year Rate Jumps to 7.22%

2 articles · Updated · CNBC · Sep 16

Mortgage applications to buy a home fell 19% from a year earlier, while total application volume dropped 4.1% last week on a seasonally adjusted basis.
The average 30-year fixed rate rose to 6.97% from 6.85% in MBA data and reached 7.22% by Tuesday, after a 0.33-point jump in six business days.
Refinance demand, typically the most rate-sensitive segment, slid 9% on the week and 65% from a year earlier as higher borrowing costs erased much of the savings incentive.
High home prices are still squeezing buyers, and the growing supply of homes for sale remains concentrated at the higher end of the market.
MBA said spiking energy prices, stubborn inflation and Fed policy concerns pushed bond yields and mortgage rates higher ahead of the central bank's Wednesday meeting.