Mortgage rates are still on the rise as they hit their highest level in a month this week. The average rate for a 30-year fixed-rate mortgage now sits at 3.06%, which is a pretty significant increase from 2.99% just one week ago.
And as rates continue to go up, demand for mortgages is now beginning to fall. Applications for home refinancing fell by a whopping 5% from last week’s numbers. In addition to that, regular mortgage applications fell by 2% compared to last week.
What’s even more concerning, mortgage applications have fallen by 19% from a year ago. So now that consumers are feeling the squeeze and opting out of buying or refinancing homes for now, what does this mean for the housing market and mortgage industry?