Per Business Insider

Fewer people are applying for mortgage loan applications per the Mortgage Bankers Association. Almost 6% fewer applications have been filed over the previous week, meaning mortgage demand has reached a 28-year low.

Specifically, mortgage loan applications dropped by 5.7% over the previous week since March 2, when the report was published, per the MBA's Market Composite Index. This came as 30-year fixed mortgage rates increased.

This resulted in an increase from 6.62% up to 6.71% over the previous week since the report. Joel Kan, the MBA deputy chief economist, gave a statement on the MBA regarding how there was a 50 basis point increase in mortgage rates over the previous month.

Kan: "Data on inflation, employment, and economic activity has signaled that inflation may not be cooling as quickly as anticipated, which continues to put upwards pressure on rates."

Despite the increase, the 6.71% 30-year fixed mortgage rates were still below October 2022 numbers, when the rates reached 7%. Goldman Sachs released a recent note regarding how home prices could decrease by double-digits.

By the end of 2024, the double-digit decrease could happen for four major US cities. The report shares how higher rates increased fears of the housing market returning to 2008 levels.

The current real estate conditions reportedly affected millennials' fears regarding buying a home. It was reported that 95% of millennials wanted to buy a home but feared that they couldn't afford it.

The US housing market has decreased by $2.3 trillion during the second half of 2022. The decrease was just a 0.9% difference from the 2008 housing crash decline.

The median home price in the US was $433,133 in May 2022 but dropped to $383,249 in January.

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