Aug. 23 (UPI) — With lending rates topping 7%, the Mortgage Bankers Association said Wednesday that applications for a home loan hit the lowest level in nearly 30 years.

The MBA found that mortgage applications declined 4.2% week-on-week over the seven-day period ending Aug. 18. Joel Kan, the association’s deputy chief economist, blamed the decline on rising interest rates.

The rate on a 30-year, fixed-term mortgage stands at 7.31%, the highest level since December 2000.

“Applications for home purchase mortgages dropped to their lowest level since April 1995, as homebuyers withdrew from the market due to the elevated rate environment and the erosion of purchasing power,” he said. “Low housing supply is also keeping home prices high in many markets, adding to the affordability hurdles buyers are facing.”

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