Mortgage applications decreased 4.2 percent from one week earlier for the week ending August 18, 2023, according to new data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. On an unadjusted basis, the Index decreased 6 percent compared with the previous week.
“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,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Low housing supply is also keeping home prices high in many markets, adding to the affordability hurdles buyers are facing.”
The Refinance Index decreased 3 percent from the previous week and was 35 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 30 percent lower than the same week one year ago.
With the 30-year fixed rate increasing to 7.31 percent last week, rates are at their highest level since December 2000.
“Treasury yields continued to spike last week as markets grappled with illiquidity and concerns that the resilient economy will keep inflation stubbornly high,” Kan added. “This spike pushed mortgage rates higher last week.”