Mortgage Demand Drops As Interest Rates Rise

Rising interest rates have cooled off the housing market a bit.

Home mortgage applications are down 8% compared to this time last year, while applications to refinance a home loan are down nearly 50% from one year ago.

Mortgage rates ticked up this week as the Federal Reserve prepares to raise interest rates.

However, home prices remain high – the average loan size is currently $453,000, according to the Mortgage Bankers Association.