Weakening demand for both purchase loans and refinancing last week brought mortgage applications down to the lowest level in 22 years, according to a weekly survey by the Mortgage Bankers Association.
Rates may go up again this year which should mean that home prices will level off a bit. I say should because in this wacky world we live in things don’t always work the way they used to.
Back in 2006 before the great recession which was brought on by the housing market crash, rates were around 6.5% for most of the year.
There really isn’t any way to soften the blow. Housing is more expensive when mortgage interest rates go up.
