Mortgage application volume has fallen for the third week in a row, according to the Mortgage Bankers Association. For the week ending July 15, applications decreased 6.3 percent from one week earlier.
The refinance share of mortgage activity increased to 31.4 percent of total applications from 30.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.5 percent of total applications.
“Mortgage applications declined for the third week in a row, reaching the lowest level since 2000. Similarly, with most mortgage rates more than two percentage points higher than a year ago, demand for refinances continues to plummet, with MBA’s refinance index also falling to a 22-year low,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase activity declined for both conventional and government loans, as the weakening economic outlook, high inflation, and persistent affordability challenges are impacting buyer demand. The decline in recent purchase applications aligns with slower homebuilding activity due to reduced buyer traffic and ongoing building material shortages and higher costs.”
The MBA’s Market Composite Index, a measure of mortgage loan application volume, decreased 6.3 percent on a seasonally adjusted basis from the week. The Refinance Index decreased 4 percent from the previous week and was 80 percent lower than the same week one year ago.