A Slow Down for Mortgage Applications May 26, 2022

The Mortgage Bankers Association produced a survey of weekly mortgage applications and it shows new applications have slowed considerably.  With the recent rise in interest rates, this should be be surprising to anyone.  Higher rates discourage refinances since many homeowners already have locked in super low rates they obtained over the last two years.  And higher rates make purchases less affordable for new homeowners.

However, this week was a little better than last week.  Meaning there are more applications this week than last, and that might mean consumers are adjusting to the higher rate environment.   Also, mortgage rates are a little lower this week than last – another possible reason for a few more applications this week.