US mortgage applications fell to their lowest level since 1996 as high bank interest rates discourage borrowers. According to official data, demand for mortgages fell 6% on a weekly basis, the lowest level in 27 years. At the same time, applications to refinance existing mortgages shrank by 7% on a weekly basis and by 11% on a yearly basis. Refinancing applications now account for less than 1/3 of total mortgage applications. Two years ago, on the contrary, they constituted ¾ of the applications.
In the United Kingdom, mortgage approvals for home purchases - a good indicator of future lending - fell to 43,300 in September, from 45,400 the previous month, according to a related announcement by the Bank of England. This is the lowest level since January.
Mortgage rates in the country have fallen back into a range after a volatile year and it will take some time for buyers to figure out what they can now afford. The real interest rate on new home loans in the country rose to 5.01% in September, from just 1.78% two years ago, the Bank said.
"My Home" program has proven to support the Greek market
In Greece, according to the Bank of Greece, demand for mortgages decreased during the third quarter of the year, due to the end of the subsidized housing program "My Home", and for the fourth quarter of 2023, the demand for housing loans is expected to remain unchanged.
The average interest rate on variable rate mortgages decreased by 16 basis points to 4.03%. While the average interest rate on existing home loan balances with a duration of more than 5 years remained almost unchanged at 4.40%.
