Mortgage Demand Drops as Interest Rates Hit Three-Year High
The demand for mortgages has continued to decline in response to rising interest rates, which have reached their highest level in three years. According to the Mortgage Bankers Association's Weekly Mortgage Applications Survey, the Composite Index fell by 6.0% week-over-week during the period ending September 25, dropping from 227.3 to 213.6. This marks a significant decline compared to just -1.5% in the previous week. The Market Composite Index is used as an indicator of overall mortgage loan activity and reflects both purchase applications and refinancing demand. The sharp drop suggests that higher borrowing costs are deterring potential homebuyers, which could have broader implications for housing market activity and related sectors such as construction and real estate services.
