Mortgage demand has taken a significant dip as rates continue to rise, reaching the lowest point since July 2024. As of today, the average 30-year fixed mortgage rate has climbed to 6.84%. This marks a notable shift from the past few months when rates were down in the low 6% range, making homebuying more affordable for many.
The sudden rise in rates, coupled with uncertainty surrounding the upcoming election, is causing potential buyers to hit the pause button. Many are adopting a wait-and-see approach, unsure of how the political landscape and economic conditions might shift. This slowdown is evident in the mortgage demand drop, which has reached levels not seen since mid-summer.
For those looking to enter the market, the current mortgage demand drop is a reflection of caution. As rates remain elevated, it’s crucial to keep a close eye on market trends, especially if you’re considering refinancing or purchasing. With the 2024 election just around the corner, many experts predict this trend could continue until there’s more clarity on future economic policies.
This mortgage demand drop is just one of many signals that buyers are increasingly cautious. As rates stabilize, the market may see renewed interest, but for now, expect this to impact the housing market through the election season.
Thanks for reading,
Chris
