Mortgage demand experiences a 28 year low

(NBC, KYMA/KECY) - Mortgage demand from homebuyers fell for the third straight week dropping to the lowest levels in nearly three decades.

According to the Mortgage Bankers Association's Seasonally Adjusted Index, the 30-year fixed rate increased to 6.71% last week, the highest rate since November 2022.

This has led to a 6% drop in mortgage applications to buy a home. That's 44% lower than a year ago and a new 28-year low.

The MBA said this was due to mortgage rates moving up by 50 basis points or half-a-percentage point in the past month.

The rising rates appear to be pushing would-be homebuyers back to the sidelines and could indicate a slow spring for the housing market.