Key facts
- Mortgage demand decreased by 2.5% last week.
- Mortgage denial rates increased from 2022 to 2024.
- Higher interest rates contributed to increased denials.
- Stricter lending standards also played a role in increased rejections.
Mortgage demand fell by 2.5% last week, according to a new report. This decline occurs amidst a broader trend of increased mortgage denial rates observed between 2022 and 2024. The rise in denials was driven by a combination of higher interest rates, which increased borrowing costs, and stricter lending standards implemented by financial institutions. These factors collectively made it more challenging for potential homeowners to qualify for mortgages, contributing to reduced demand in the housing market.