International
Higher mortgage rates cool refinancing in the US
US mortgage refinancing demand has fallen to half its level a year ago. Mortgage rates, now at their highest in nearly three years, have also weakened homebuyer demand.
By Damián Ortells ·
In the United States, rising mortgage rates have sharply cooled the refinancing of home loans. Demand for refinancing has fallen by half compared with a year ago. Mortgage rates have reached their highest level in almost three years, and demand for home purchases has also weakened.
Refinancing usually increases when households can replace an old mortgage with a new one at a lower interest rate. When rates rise, that option becomes less attractive and many families delay both refinancing and buying. In the US, long-term fixed-rate mortgages are common and respond to rate expectations and debt markets.
For Spanish readers, there is no automatic direct consequence. But the trend shows how higher rates can reduce property transactions and financing. In Spain, the effect depends above all on Euribor, the European Central Bank and the conditions of each loan.