Mortgage Bankers Association

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.