Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years

Mortgage demand has shrunk since interest rates hit their highest level in nearly 23 years. Many potential homebuyers are deterred from making a purchase due to the high monthly payments that come with such a high interest rate. People with existing mortgages may also be deterred from refinancing or taking out a new loan if they cannot afford the higher payments. Rising mortgage rates can also slow economic growth since home purchases are often a driver of growth in consumer spending. Additionally, higher interest rates can lead to a decrease in affordability in the housing market, making it harder for prospective buyers to find homes within their budget.