Mortgage applications

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.

Purchase numbers came in higher for both conventional and government activity, while the average loan amount shows signs of easing.

Surging interest rates have pushed refinance applications down by over 70% in a year, while ARMs have doubled their share in three months.

But the sluggish pace of refinances brought down overall application numbers last week.

Overall application activity was down by more than 40% compared with one year ago, the Mortgage Bankers Association found.

Steadily climbing rates have contributed to a 40% decline in loan activity from one year ago.

And a recent slowdown in government-backed loan issuance is pushing average purchase amounts to another record high.

Increasing rates contributed to a sluggish pace for refinances, but the purchase market showed sustained strength.

Increased purchase activity countered a slowdown in refinance applications, which were impacted by rising rates.

Such applications have declined on an annual basis for the past three months, but overall weekly numbers increased due to a jump in refinances amid plummeting rates.

Despite lower numbers, refi applications continued trending strongly, while purchases fell close to lows from more than a year ago.

Meanwhile, the average new-home mortgage price climbed to a new all-time high, according to the Mortgage Bankers Association.

Increases in refinances, both in applications and average size, help lead overall numbers higher

Demand was strongest at the high end of the market, which pushed loan amounts up for the fourth straight month.