Mortgage applications

Buyer affordability has decreased by almost 22% in the past year, according to the Mortgage Bankers Association.

Volumes fell 18% compared to the previous week, while refinance activity also pulled back.

Higher interest rates helped drive down refinances by 87% and purchases by 42% compared to last year.

Ongoing weakness in housing markets and the economy has now driven purchase activity to its lowest level since 2015, while overall application numbers decreased for the 10th time in 11 weeks.

Decline was largely driven by a large dip in cash-out refinance locks.

Refinances inched up 2% as interest rates dipped, but accounted for only 31% of activity, compared to two-thirds a year ago.

Average purchase-loan amounts shrank for the second week in a row and are currently 12% below their record size in March.

Elevated prices coupled with higher mortgage rates are leading to affordability challenges that have reduced borrowing volumes.

While the purchase index registered a tiny uptick, activity has fallen to nearly the same level seen during the first months of the pandemic shutdown.

While longtime non-QM companies have originated mortgages in the segment for years, new contenders have come into the market as the number of potential customers who fit into the category grows.