Mortgage demand tumbles as rates drive down housing market

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Mortgage demand tumbled again last year amid stubbornly high mortgage rates, which have depressed the housing market and caused pain for homebuyers.

The volume of refinances dropped by 2% during that same time, according to the group’s weekly survey, and has plunged 9% from a year ago.

“Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6 percent by the end of the year,” he added.

 

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