The Strategist

US mortgage demand at 27-year low due to high rates

09/18/2023 - 11:13

According to MarketWatch, which cites data from the government-owned mortgage firm Freddie Mac, mortgage demand in the United States has reached a 27-year low amid ongoing rises in loan rates.

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Last week, the average annual interest rate for 30-year loans increased to 7.18% from 7.12% the previous week. In the prior year, it was 6.02%.

15-year loans currently have an average AIR of 6.51% compared to 5.21% a year earlier.

Freddie Mac determines average rates based on information from around 80 mortgage loan originators countrywide,. The rates don't account for possible fees or other mortgage-related costs.

"Mortgage rates rose again this week and remain above 7 percent," Freddie Mac Chief Economist Sam Khater was cited as saying. "Mortgage rates are high because of accelerating inflation and the expanding economy."