In the United States, a measure of mortgage applications fell to its lowest level since late 2018. This shows how high mortgage rates are, which are close to a 13-year high.
According to Bloomberg, the Mortgage Bankers Association’s overall application index fell 8.3 percent to 343.1 in the week ending April 22, according to the Washington-based association.
Refinancing mortgage applications declined 9% to the lowest level since December 2018, while purchase applications dropped 7.6% to the lowest level in nearly two years.
The average 30-year fixed mortgage contract rate rose 17 basis points to 5.37 percent, the highest since August 2009. In just eight weeks, the rate had risen by 1.22 percentage points. Rates have risen by more than two percentage points since the end of last year. The effective rate, which takes into account compounding, increased to 5.56 percent.
Over 75% of all retail home mortgage applications in the United States are covered by the survey.