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.

The decline in loan activity and softening prices also helped drive down builder sentiment for the 11th month in a row.

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.

Activity is coming in at or below 2020 levels according to reports from the Mortgage Bankers Association and Redfin.

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

New single-family home mortgage applications, housing starts and industry sentiment all came in at their lowest since 2020.

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.

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.

A hike in guarantee fees charged to lenders for the companies’ backing of loans was due to expire this year, but lawmakers now want to extend it to raise $21 billion for the bipartisan package.

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.

Fewer borrowers are suspending payments for pandemic hardships but some who got back on track are having trouble again, and deadlines could spur a final round of new requests.