Mortgage applications sink to their lowest level since before the pandemic hit

  • Mortgage applications decreased 1.8% last week, according to the Mortgage Bankers Association’s seasonally adjusted index, falling to the lowest level since the beginning of 2020.  
  • Both refinance and purchase applications took a hit. Mortgage applications to refinance a home dropped 2% for the week and were 8% lower than a year ago.
  • The decline came even as mortgage rates fell.

Mortgage demand fell for the second week in a row, as low inventory and high home prices continue to weigh on the housing market. Falling mortgage rates didn’t spur demand. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) dropped 5 basis points to 3.15, with points decreasing to 0.38 from 0.39 (including the origination fee) for loans with a 20% down payment.

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