U.S. Mortgage Indices Crashed as U.S. Mortgage Rates Soared to 23-Year High

The U.S. mortgage rates jumped to a 23-year high this week while reaching 7.31%, the highest in 23 years, pushing mortgage demand from homebuyers to a 28-year low. Last year, the average rate was 5.65%.

As a result, according to the Mortgage Bankers Association's seasonally adjusted index, total mortgage applications fell 4.2% to 184.8 points last week from the previous week, posting the lowest level since April 1995. Applications to refinance a home loan dropped 2.8% and those to buy a home went down 5%.

The average contract interest rate on 30-year fixed-rate mortgages with qualifying loan balances ($726,200 or less, according to FNMA rule) rose last week to 7.31% from 7.16%, with a 0.78 loan score increasing 20% ​​from 0.68, including the down payment.

Mortgage applications for home purchases fell 5% this week and are down 30% from a year ago. Homebuyer demand was at its lowest level since December 1996. Potential buyers not only have to contend with high interest rates and high prices, but also extremely low supply.