Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years
As interest rates continue to rise, the demand for mortgages is expected to shrink. Increased interest rates signify a higher cost for borrowers to take on mortgage debt. As such, paying off a loan becomes more expensive and therefore borrowers may be less likely to pursue mortgages. Additionally, some buyers may be unable to qualify for a loan due to higher rates. In these cases, potential buyers may instead focus their efforts elsewhere, such as renting or focusing on saving. Investors may also be put off by the higher rates, choosing to pursue other options that will yield better returns on their investments.