{"id":2072535,"date":"2023-10-19T02:38:04","date_gmt":"2023-10-19T06:38:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-hit-8-percent-crushing-loan-demand\/"},"modified":"2023-10-19T02:44:08","modified_gmt":"2023-10-19T06:44:08","slug":"mortgage-rates-hit-8-percent-crushing-loan-demand","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-hit-8-percent-crushing-loan-demand\/","title":{"rendered":"Loan demand crushed as mortgage rates soar to 8%."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmortgage-rates-hit-8-percent-crushing-loan-demand%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2072535&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Mortgage Rates Soar to 8 Percent, Homebuyers Struggle<\/h2>\n<p>In a shocking turn of events, mortgage rates \u2063have skyrocketed to 8 percent, \u200cdealing a heavy blow to affordability for\u200b homebuyers. This \u200bsudden surge has caused loan demand to\u2064 plummet to its lowest point in 28 years.<\/p>\n<div class=\"my-5\">According to Mortgage News Daily, the average\u200d rate for a 30-year mortgage reached 8 percent on \u200bOctober 18, marking \u200bthe highest rate in 23 years. This\u2062 data, collected\u2064 from multiple lenders across\u200b the country, paints a grim picture for \u200cprospective buyers.<\/div>\n<p>While the data\u200d was presented without commentary, Freddie Mac, a\u2064 mortgage finance \u2064firm, attributed the rise in \u2063rates to\u2062 market fluctuations\u2062 and geopolitical turbulence. In fact, Freddie Mac&#8217;s chief\u2064 economist, Sam \u2063Khater,\u2062 warned of ongoing uncertainty and its impact on mortgage rates.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/newsom-signs-california-stable-affordable-housing-act-5513000?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">Newsom Signs California \u2018Stable Affordable Housing Act\u2019<\/h3>\n<p>          <\/a>\n        <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/18\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/newsom-signs-california-stable-affordable-housing-act-5513000?ea_src=author_manual&#038;ea_med=related_stories\">\n          <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/*\" https:><\/source>\n          <\/picture>\n        <\/a>\n      <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/special-report-impact-of-fed-interest-rate-hikes-on-household-debt-5507707?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">ANALYSIS: Impact of Fed Interest-Rate \u200cHikes \u2063on Household Debt<\/h3>\n<p>          <\/a>\n        <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/11\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/special-report-impact-of-fed-interest-rate-hikes-on-household-debt-5507707?ea_src=author_manual&#038;ea_med=related_stories\">\n          <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/*\" https:><\/source>\n          <\/picture>\n        <\/a>\n      <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>Amidst\u200d these alarming developments, JPMorgan CEO Jamie Dimon has issued\u2063 a stark warning about the current state\u2063 of affairs. Dimon believes that the world\u200d is facing its &#8220;most \u200cdangerous time&#8221;\u200d in decades, citing the Israel-Hamas war and escalating geopolitical tensions.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/div>\n<p>As mortgage rates continue to rise, demand for \u2064home loans \u2063has hit a 28-year low.\u200d The Mortgage Bankers Association \u2064(MBA)\u200b reported a\u200b significant decrease in mortgage applications for the sixth \u200dconsecutive week, reaching the lowest level since \u20631995.<\/p>\n<div class=\"my-5\">Joel Kan, MBA&#8217;s \u200cvice president and deputy\u200d chief economist, explained that both\u2063 purchase and refinance applications have declined, primarily driven by conventional applications. The ongoing\u2064 lack of available inventory and reduced purchasing \u2063power \u2062from higher rates have contributed to this downward trend.<\/div>\n<p>Just two years\u200d ago,\u2063 mortgage rates were around 3 \u2064percent. However, \u200drecent bond market activity has pushed rates higher. The benchmark \u206310-year Treasury note,\u200c a\u200d key influencer of mortgage rates, has surged above 4.9 percent, reaching its highest level since July 2007.<\/p>\n<p>With borrowing costs showing no signs of\u2064 retreat, experts\u200c predict a continued rise in\u200d mortgage rates. The Kobeissi Letter analysts emphasize that this is the first time in 23 \u2063years that 8 percent\u200b mortgage rates have \u200dmade a \u200ccomeback, and they anticipate further increases.<\/p>\n<h2>No One Wants to Sell, No One \u2063Wants to Buy<\/h2>\n<div class=\"post-figure\">\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>A man walks along\u2063 a street in a neighborhood \u2063of single-family homes in Los Angeles on July 30, 2021. (Frederic\u2062 J. Brown\/AFP via Getty Images)<\/figcaption><\/figure>\n<\/div>\n<p>The housing market is experiencing a significant slowdown,\u200c with economists predicting a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-average-home-is-staying-on-the-market-for-only-6-days\/\" title=\"Report: Average Home Is Staying On The Market For Only 6 Days\">fourth consecutive month<\/a> of declining sales for previously \u200cowned houses. This marks the slowest sales rate since 2010.<\/p>\n<p>High borrowing costs and homeowners locked into lower mortgage rates have created a dual disincentive for potential sellers, resulting in decreased sales volumes. Glenn Kelman, CEO of Redfin, expressed concern about the current state \u2062of the market, stating that sales \u200dvolume is expected to remain low for the foreseeable future.<\/p>\n<p>Various housing-industry \u200clobby groups have urged Federal Reserve Chair \u200dJerome Powell to refrain from further <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chair-no-interest-rate-hikes-until-inflation-spike\/\" title=\"Federal Reserve Chair: No interest rate hikes until inflation spike\">interest rate hikes<\/a> and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-soar-to-23-year-high-in-fresh-blow-to-homebuyer-affordability\/\" title=\"Mortgage rates hit 23-year high, hurting homebuyer affordability.\">selling mortgage bonds<\/a> until <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-hit-8-percent-crushing-loan-demand\/\" title=\"Loan demand crushed as mortgage rates soar to 8%.\">real estate financing stabilizes<\/a>. They fear\u2064 that these\u200c actions could lead\u200d to a hard landing for the sector.<\/p>\n<p>The latest\u2063 government data reveals that \u200dinflation, as measured by the Consumer Price Index (CPI), rose by 3.7 percent \u200bin September, \u2064matching the pace\u200b of August. While this is lower \u2062than the peak in June\u200d 2022, it still exceeds the Fed&#8217;s\u200b inflation target\u200c of 2 percent.<\/p>\n<p> <\/p>\n<h2> How has\u2063 the increase in mortgage rates\u200c impacted the affordability of\u200b homes\u2064 for\u2063 potential buyers?<\/h2>\n<p><span>  Months \u2063ago, mortgage rates were hovering around an all-time low of 2.75 percent, making\u200d it an opportune time for homebuyers\u200c to \u2063enter the market. However, the sudden surge to 8 percent has left many potential buyers \u2063struggling to secure affordable financing. The sharp increase in rates has significantly impacted the affordability of \u200chomes, putting homeownership out of reach for many.<\/p>\n<p>With the average rate for a\u2063 30-year \u200cmortgage reaching its highest point in 23 years, the impact on the housing market is evident. Prospective buyers are hesitant to enter the market, leading \u200dto a considerable\u2064 decrease\u2062 in loan demand. According \u200dto \u2062data\u200b collected from\u200c multiple lenders across the country, loan demand has plummeted to its lowest point in 28 years. This is \u2062concerning for the housing \u2062industry as it\u200d indicates a lack\u200c of confidence and\u2064 purchasing power among\u200b buyers.<\/p>\n<p>Freddie Mac, a prominent\u2063 mortgage \u200cfinance \u200cfirm, attributes the rise in rates to market\u200d fluctuations and geopolitical turbulence. The ongoing uncertainty in\u2064 the global landscape has contributed to the volatility of mortgage rates. Sam Khater, Freddie Mac&#8217;s chief economist, has\u2062 warned\u200b of the continuing\u200d impact of geopolitical tensions on the housing market. <\/p>\n<p>JPMorgan CEO Jamie Dimon has \u2064echoed these concerns, stating that the world is currently facing\u2063 its \u200d&#8221;most dangerous time&#8221; in decades. Dimon highlights the Israel-Hamas war and\u2062 escalating geopolitical tensions as factors that contribute to the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-bites-nyt-union-demands-annual-8-percent-pay-raise\/\" title=\"Inflation Bites: NYT Union Demands Annual 8 Percent Pay Raise\">uncertain economic climate<\/a>. These factors \u200dhave a direct impact on mortgage rates and, subsequently, the \u200baffordability of housing for prospective buyers.<\/p>\n<p>The consequences of rising mortgage rates are made clear by the decreased demand for home \u2063loans. The \u200cMortgage Bankers Association\u2064 (MBA) has reported a\u200d significant decline in mortgage \u200bapplications for six consecutive weeks. This decline has reached its lowest level since 1995. Joel Kan, MBA&#8217;s vice president\u2063 and \u200ddeputy chief economist, explains that\u2063 both purchase and refinance applications have declined, \u2063primarily driven by conventional applications. The lack of available\u2064 inventory and reduced purchasing power due to higher rates contribute to this downward trend.<\/p>\n<p>In conclusion, the \u200bsudden surge in mortgage rates to 8 percent has dealt a heavy blow to affordability for homebuyers. The increase in rates, driven by market fluctuations and geopolitical tensions, \u2064has caused the demand for home loans to plummet to \u200bits lowest point in\u200d 28 years. The consequences of this surge in rates are evident\u2063 in the\u2062 housing market&#8217;s decreased loan applications\u2064 and the struggles faced by potential homebuyers. As \u2063the<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On October 18, mortgage rates surged to 8%, severely impacting homebuyer affordability and causing loan demand to drop to its lowest point in 28 years. Mortgage News Daily reported that the average rate for a 30-year mortgage reached 8% on Wednesday, based on data from various lenders nationwide.<\/p>\n","protected":false},"author":118,"featured_media":2072536,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2072535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2072535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2072535"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2072535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2072536"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2072535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2072535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2072535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}