Mortgage Applications for Homes Drop to Lowest Weekly Level Since 2000!
Updated: Sep 1
As if observers needed more evidence that the housing market is experiencing a steep contraction, the Mortgage Bankers Association (MBA) reported that the week ending August 12, 2022 saw the lowest level of loan applications in 22 years.
Data from the MBA’s Weekly Mortgage Applications Survey and Market Composite Index revealed that applications during the week dipped 2.3% from the week prior on a seasonally adjusted annual basis.
“Mortgage application activity was lower last week, with overall applications declining over 2% to their lowest level since 2000,” said Joel Kan, MBA's associate vice president of economic and industry forecasting. “Home-purchase applications continued to be held down by rapidly drying-up demand as high mortgage rates, challenging affordability and a gloomier outlook of the economy kept buyers on the sidelines.”
The MBA’s index that tracks applications for purchase mortgages, unadjusted for seasonality, declined by 2% from the previous week and was down 18% from the same week in 2021. Purchase activity has now fallen in six of the past seven weeks. By Arnie Aurellano,Website content editor, Scotsman Guide