Mortgage Demand Drops as Potential Buyers Ignore Falling Rates and Stay on Sidelines
U.S. mortgage applications tumbled as potential buyers across the country ignored falling borrowing rates and stayed on the sideline due to still-high home prices.
Applications for mortgage loans decreased 0.8 percent from a week earlier, according to data from the Mortgage Bankers Association (MBA) for the week ended Nov. 25, 2022, with an adjustment for the Thanksgiving holiday.
The MBA’s Market Composite Index is a gauge of mortgage loan-application volume.
The Federal Reserve has been deliberately raising mortgage rates via policy rate increases in efforts to slow down the housing market and control inflation.
Interest-rate hikes increase borrowing costs, which in turn impact mortgage and refinance rates, causing a negative affect on the broader housing market….