Climbing interest rates are putting the squeeze on the mortgage refi market. Applications to refinance home mortgages fell 5% last week, dropping to an 18-year low.
According to CNBC, mortgage application volume was nearly 27% lower than a year ago when rates were lower. The refinance share of total mortgage application volume fell to its lowest level since August 2008, at just 35.3%.
As Peter Schiff pointed out in a recent podcast, this is a bad sign for the broader economy. With rising rates, US consumers will no longer have the option of using their house as an ATM.
