- Spiking mortgage rates multiply the effects of exploding home prices on mortgage payments, and it has taken layer after layer of homebuyers out of the market for the past four months.
- Mortgage applications to purchase a home fell further this week and were down 17% from a year ago, hitting the lowest level since May 2020, according to the Mortgage Bankers Association’s weekly Purchase Index.
- The wave of refis that started in early 2019 became a tsunami starting in March 2020, as mortgage rates plunged to record lows over the next few months. This effect ended months ago. By now, applications for refinance mortgages collapsed by 70% from a year ago, and by 85% from March 2020.
For further details see:
Mortgage Volume Gets Crushed By Spiking Interest Rates: What It Means For Future Home Sales, Consumer Spending