JACKSONVILLE, Fla. – Mortgage demand is at its lowest level in decades. Demand is about half of what it was a year ago.
This is happening as interest rates are going up again and houses are taking longer to sell.
Mortgage demand is at a 22-year-low right now.
Applications to get a loan to buy a house fell almost 7% this past week.
But we are still seeing people wanting to buy homes. That’s the case on Garden Street where there are several new houses being built.
According to the Mortgage Bankers Association, the average rate on a 30-year fixed mortgage rate dropped a little bit in May, but rose again this past week to start the month from 5.3% to 5.4%, that’s for homes where buyers put down 20%.
That rate was a little more than 3% at this time last year.
Refinancing also dropped.
The Mortgage Bankers Association says this happening at a time when homes that are overpriced on the market and or less desirable are having their prices reduced and taking longer to sell.
Florida is one of the places where supply is lower and prices are higher, but that’s not deterring buyers who are determined to buy a house. It just makes that process tougher and take longer.