Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years

As interest rates hit the highest level in nearly 23 years, demand for mortgages has started to shrink. With rates rising, many prospective homebuyers are now on the sidelines as they can no longer afford to purchase homes at the current rates being offered. This has caused a decrease in demand for mortgages, which in turn has led to a decrease in loan origination volumes. As a result, many lenders are now tightening their lending standards and amending their eligibility criteria to ensure that only qualified borrowers can obtain loans. With the slowing of loan origination, many lenders have also begun to reduce the programs they offer and are now focusing more heavily on the most creditworthy borrowers. This has caused a balancing out of the market, as borrowers who are unable to secure mortgages in the current environment look for alternative solutions.