Mortgage Demand Drops to Lowest Level in 26 Years as Housing Market Slump Continues
Mortgage demand has fallen in the past two weeks to its lowest level since the 1990s as elevated mortgage rates and fears of a recession take a toll on the market, according to latest data from the Mortgage Bankers Association (MBA).
The Market Composite Index, which measures the volume of mortgage loan applications, fell 13.2 percent for the week ended Dec. 30 on a seasonally adjusted basis when compared to two weeks earlier, according to an MBA press release on Jan. 4. On an unadjusted basis, the decline was 39.4 percent.
Joel Kan, MBA’s vice president and deputy chief economist, pointed out that the end of the year tends to be a slower time for the housing market. With mortgage rates above 6 percent and the threat of a recession causing concerns, mortgage applications have fallen to their lowest levels since 1996….