Mortgage Demand Hits 30-Year Low as Rates Approach 8%

Mortgage demand has plummeted to a nearly three-decade low as consumer demand cools sharply due to a recent spike in mortgage rates. The Mortgage Bankers Association's index of mortgage applications fell 6.9% last week, with the average rate on the popular 30-year loan climbing to 7.7%, the highest level since November 2000. The housing market has been heavily impacted, with applications for home purchases and refinancing both experiencing significant declines. The Federal Reserve's aggressive tightening campaign and limited inventory have contributed to the decline in housing demand.