Buying a house and taking out a big mortgage has slipped down on the to-do list for millions of people since inflation is pounding consumers and interest rates have risen. This was obviously going to happen, and now we have some data to determine the scope of it.
Just last week, mortgage demand fell more than 6% just from the previous week. That marks the lowest level since 2000; you remember that year, right? It’s when flash drives were invented, and Elon Musk formed the company X.com, an online financial services platform that became PayPal in 2002.
According to the Mortgage Bankers Association, applications for a mortgage to buy a home dropped 7% last week, which is a 19% decrease from 2021.
Joel Kan, an economist for MBA, told CNBC this.
“Purchase activity declined for conventional and government loans as the weakening economic outlook, high inflation, and persistent affordability challenges are impacting buyer demand.”
Let’s talk about refinances; those are down too, 4% for the week and a staggering 80% from July of 2021.
If you think these numbers are bad, brace yourself, the Federal Reserve is expected to raise rates again next week.