Mortgage demand is currently the lowest it has been since December 2018, with applications for a mortgage to purchase a home falling by one percent last week, according to reports.
Despite interest rates dipping, applications for a mortgage remain low, 14% lower than the same week a year ago, according to the Mortgage Bankers Association.
Mortgage rates, in general, are currently far higher than they were when 2022 began, even with rates falling for the fourth time in five weeks, MBA economist Joel Kan shared with NBC News.
The four-year low comes just after a report from earlier this month found that adjustable-rate mortgage demands were at a 14-year high, CNBC reported.
Right now, the average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances — less than $647,200 — is 5.33%. Points have also dropped to 0.51 for loans with a 20% down payment, NBC reported.
The average contract interest rate for a 30-year fixed-rate mortgage with jumbo loan balances — more than $647,200 — is 4.93%.
While high interest rates and the increase in costs for a home are pricing many buyers out, not everyone is feeling the same struggle.
“Demand is high at the upper end of the market, and the supply and affordability challenges are not as detrimental to these borrowers as they are to first-time buyers,” Kan said.