Mortgage demand tumbled last week as rising borrowing costs continued to weigh on buyers, with applications falling 10.4% overall, according to data from the Mortgage Bankers Association released Wednesday.
The slowdown comes as RH (NYSE:RH) CEO Gary Friedman warned of “the most dire housing market in decades,” citing global tensions, tariffs, and economic uncertainty, underscoring the mounting strain on U.S. homebuyers and the broader housing sector.
Refinance applications led the drop, falling 17% week-over-week and more than 40% compared to last month. Purchase applications slipped 3%.
The average 30-year fixed mortgage rate rose to 6.57%, its highest level since August, said Mike Fratantoni, Chief Economist at the MBA. He noted that while higher borrowing costs are weighing on demand, increased housing supply is offering some offset. Federal Housing Administration (FHA) and Veterans Affairs (VA) loan applications continue to hold up better …
