Mortgage Rates Surge to 23-Year High

Mortgage Rates , Surge to 23-Year High.

Consumer demand for home loans has cooled as rates continue to surge, Fox News reports.

.

On Sept.

27, new data from the Mortgage Bankers Association showed that mortgage applications dropped 1.3% last week.

The average 30-year loan rate jumped from 7.31% to 7.41%.

That is the highest mortgage rates have been since December 2000, Fox News reports.

Just one year ago, rates were at 5.65%.

Mortgage rates moved to their highest levels in over 20 years as Treasury yields increased late last week, Joel Kan, MBA's deputy chief economist, via Fox News.

Based on the FOMC’s most recent projections, rates are expected to be higher for longer, which drove the increase in Treasury yields, Joel Kan, MBA's deputy chief economist, via Fox News.

Mortgage applications are down 27% year-over-year, Fox News reports.

Refinancing applications have dropped 21% within the same time period.

Both prospective homebuyers and homeowners continue to feel the impact of these elevated rates.

Many homeowners have little incentive to refinance, Joel Kan, MBA's deputy chief economist, via Fox News