Homebuyer demand for mortgages drops 10%, as higher interest rates price some people out
Mortgage rates have been rising since the start of the year, but buyers initially seemed unfazed, some even rushing to get in before rates moved higher. Now buyers are pulling back. According to the Mortgage Bankers Association, mortgage applications to purchase a home dropped 10% last week compared with the previous week, seasonally adjusted, and were 12% lower year over year. Also, housing supply is a critical factor in mortgage demand. Realtor.com said the total inventory of homes for sale was down 28% nationally in January from last year. New listings were also down 9%, the second straight month of declines. That is likely playing into February since sellers are not exactly rushing into the market.