A mid-September “Chart of the Week” from the Mortgage Bankers Association illustrates how overall mortgage application activity continues to trend lower. They say refinances have dried up due to rising rates rising and recently hit the 6% mark for the first time since 2008. The MBA also says higher rates have led to a pullback from potential homebuyers who face affordability hurdles or are delaying their decision to get into the market. The chart below shows home purchase applications by loan size as of August 2022.
“Purchase activity saw a recent peak in the second half of 2020 and experienced strong annual growth until June 2021, but have declined since then. As of August 2022, purchase applications were 20.4% lower than a year ago.”