Mortgage demand falls to the lowest level since the end of 2018 in the United States

Economist and MBA associate vice president of economic and industrial forecasting Joel Kan told CNBC that Mortgage rates fell for the fourth time in five weeks as concerns about weaker economic growth and the increasing stock market sell-off drove Treasury yields lower.

Added to this, the 0.5% interest rate hike imposed by the Federal Reserve in early Mayand the strong home price gains are pushing the demand for housing to decrease.

“Demand is high at the higher end of the market, and the supply and affordability challenges are not as detrimental to these borrowers as they are to first-time buyers,” Kan said.

On the other hand, heHome loan refinance applications fell 5% last week and were 75% lower than a year ago. Although rates have receded from their recent highs, refinancing demand has not returned to its place.

In addition to mortgage claims, applications for housing rentals in the US also registered falls. According to one of the most recent Redfin report, the average monthly rent requested in the country rose 15% in May, compared to a year ago, but was down from the 17% recorded in March. That is, there was a drop of 2% compared to the previous month.

These casualties could be Early sign that the Fed’s tactic of raising rates to quell inflation is workingsaid Redfin economist Daryl fairweather.