Mortgage applications declined by 1.8 percent from one week prior, to the lowest level in 22 years, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending July 22.
“Mortgage applications declined for the fourth consecutive week to the lowest level of activity since February 2000,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said. “Increased economic uncertainty and prevalent affordability challenges are dissuading households from entering the market, leading to declining purchase activity that is close to lows last seen at the onset of the pandemic.”
The Refinance Index decreased 4 percent from the week prior and was 83 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 30.7 percent of total applications from 31.4 percent the previous week.
“Weakening purchase applications trends in recent months have been consistent with data showing a slowdown in sales for newly constructed homes and existing homes,” Kan said. “A potential silver lining for the housing market is that stabilizing mortgage rates and increases in for-sale inventory may bring some buyers back to the market during the second half of the year.”
The weekly survey also showed the average contract interest rate for 30-year fixed-rate mortgages with conforming balances decreased to 5.74 percent for the week ending July 22, down from 5.82 percent the week prior.