Not surprisingly, applications for home loans have declined rapidly since mortgage interest rates have climbed. How much? Here are some interesting statistics:
- Weekly applications are at the lowest level since December 2018.
- This week was the third consecutive week of declines, indicating the housing market is also slowing down.
- Refinance applications are down 75% from their peak in 2021.
- Purchase applications are down from last week, and have decreased three weeks in a row.
Higher interest rates. Higher prices. Higher Inflation. Until we see a break in any or all of these three root causes, we will continue to see fewer borrowers and applications.