Jessica Lautz

Higher mortgage rates don't just keep buyers on the sidelines. Application denials rise too

Higher interest rates do more than just deter potential homebuyers — they may also block consumers from qualifying for a mortgage, according to new research. The rate of denials in loan applications was 15.1% in 2024, up from 12.2% in 2021, a rise that occurred alongside a surge in mortgage rates from below 3.5% to more than 6.5%, researchers at the Federal Reserve Bank of St. Louis said in a new blog post. At the same time, however, fewer consumers were applying for mortgages as rates...