Mortgage Demand Falls to the Lowest Level Since 1995 as Interest Rates Near 8%

October 18, 2023

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.70% from 7.67%.

by Diana Olick CNBC.com

Mortgage rates last week rose for the sixth straight week, causing demand for home loans to drop to the lowest level since 1995.

Total application volume fell 6.9% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.70% from 7.67% and points decreased to 0.71 from 0.75 (including the origination fee) for loans with a 20% down payment. That is the highest rate since November 2000. The rate was 6.94% during the same week one year ago.