Mortgage demand, which has suffered four straight months of declines, fell last week to the lowest level since 1997, as interest rates continued to rise.
According to the Mortgage Bankers Association, homebuyers' demand for mortgages fell 4% and was 38% less than one year ago. Applications to refinance a home loan fell 7% compared with the previous week, in seasonally adjusted terms. Demand was 86% higher than that of the same week a year ago.
Refinance is now available to a record number of borrowers. The Covid pandemic was so severe that interest rates were so low, the majority of borrowers with higher rates have refinanced.
A sign is posted at the front of a San Francisco, California home for sale on 7/14/2022. For the first time since 2019, the number of homes available for sale in the U.S. increased 2 percent in June.