The rising interest rates for mortgages are slowing potential home buyers and individuals interested in refinancing their homes.
Nationwide, applications for refinancing a home dropped 56% from one year ago. Total mortgage applications decreased 13 %.
The average contract interest rate for a 30-year fixed rate mortgage was up slightly from 4.05% to 4.06%.
Higher mortgage rate and the steady trend of higher prices pushed applications lower. Continued rising interest rates will continue to challenge many potential buyers and will begin to slow price growth in the future.
Fanni Mae predicts $2.72 Trillion in mortgage originations in 2021 and $2.47 trillion in 2022