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The U.S. mortgage market is seeing a slowdown due to escalating rates, leading to a significant decrease in mortgage demand. The Mortgage Bankers Association (MBA) reported a 2.5% increase in mortgage applications, with both the purchase and refinance index showing growth. The market also saw a surge in all-cash homebuyers, with 1 in 3 U.S. homebuyers paying all cash, the highest level in nearly a decade. Mortgage rates experienced the biggest one-week drop in over a year, leading to the first increase in mortgage demand in a month. These rates have dropped rapidly from a high of 8% to 7.4% within three weeks, offering homebuyers a chance to secure lower rates. Nationwide has also reduced its mortgage rates, offering the first two-year fix below 5% since June. Despite these changes, the credit crisis continues to impact Black homeownership plans, indicating a broader effect on the housing market. The housing market is showing signs of loosening as mortgage rates decrease.
