Mortgage applications fell last week, the third week in a row, as they are now at the lowest level since 2000, according to a new survey.
On Wednesday, the Mortgage Bankers Association (MBA) released its weekly mortgage application survey, which found that the Market Composite Index, which measures the volume of loan applications, fell 6.3% last week, adjusted for seasonality.
On an unadjusted basis, the Index was up 17% from the previous week.
Mortgage applications fell for the third straight week, reaching their lowest level since 2000. Similarly, with most mortgage rates up more than two percentage points from a year ago, refinancing demand continues to plummet, with the MBA refinancing index also falling to a 22-year low,” said Joel Kan, MBA’s associate vice president of economic and industrial forecasting. “Buying activity declined for both conventional and government bonds as the weakening economic outlook, high inflation and ongoing affordability issues affect buyer demand. The decline in recent purchase requests aligns with slower home construction activity due to reduced buyer traffic and ongoing shortages of building materials and higher costs .”
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The refinancing index and the purchasing index saw similar declines of 4% and 7% respectively from a week ago. The refinancing index is now 80% lower than a year ago.
The FHA share of total applications rose to 12.4% from 11.7% the week before, while the VA share of total applications fell to 10.6% from last week’s 11.2% .
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The survey covered more than 75% of all US private home mortgages and has been conducted weekly since 1990.