It was expected given slowing sales, but the Mortgage Bankers Association has announced a stark reality: mortgage applications have hit their lowest level since 2000.
Per its weekly survey, the MBA reports that loan application volume fell 2.3 percent for the week ending Aug. 12, compared to the previous week. That means purchase apps were down 62 percent compared to the same week in 2021.
It wasn’t much better news on the refi front. The refinance index had a 5.4 percent decline from the previous week and fell 82 percent annually—lowest level since November 2000.
“Home purchase applications continued to be held down by rapidly drying up demand, as high mortgage rates, challenging affordability, and a gloomier outlook of the economy kept buyers on the sidelines,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. However, if home price growth slows more significantly and mortgage rates move lower, we might see some purchase activity return later in the year.”