While the low mortgage interest rate caused record numbers of people to exchange their existing mortgage for a cheaper one, the rise in interest rates causes the opposite movement. The total number of mortgage applications has also been smaller in recent months than in the same period last year, reports Mortgage Data Network (HDN).
Just over 142,000 applications for mortgages were made. “That’s a decrease of 3.2 percent compared to the second quarter of last year.” More than 8 percent fewer applications were made for a mortgage loan that is not used to buy a house.
“The rate hikes seem to have brought an abrupt end to the dominance of refinancers in the mortgage market since August 2019,” concludes HDN, which has a view of 85 percent of the market.
According to HDN, the number of people who apply for a so-called supplement – increasing the existing mortgage or taking out a second loan with the house as collateral – remains reasonably stable.
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