Recent increases in mortgage interest rates have led to a notable decline in demand from both homebuyers and homeowners, CNBC reports.
According to the Mortgage Bankers Association, total mortgage application volume fell by 5.1% last week.
The average contract rate for 30-year fixed-rate mortgages rose to 6.36%, the highest level since August, driven by strong economic data and a robust September jobs report.
Refinancing applications dropped 9% for the week but remain 159% higher than last year. Purchase mortgage applications saw a minor decline of 0.1%, although demand is 8% higher compared to the same week in 2023.
Following the employment report, rates surged further, with the average for a 30-year fixed mortgage now at 6.62%.
While mortgage rates are lower than a year ago, home prices are higher. Inventory has improved, but there is still not enough for sale on the more affordable end of the market.
