Mortgage Apps: Purchases Drop to Lowest Since Pandemic

Bottom Line:  Purchase applications, which had held up remarkably well given the upward move in mortgage rates, fell sharply last week, hitting the lowest level since the pandemic. Refinancing fell again last week and remains near record lows with most outstanding mortgages carrying rates well below last week's effective average 30-year fixed rate of 5.70% (adjusted for points paid). Overall, after months of higher than expected activity given the rise in mortgage rates, it now appears that purchase volumes are turning sharply lower.

The MBA Mortgage Application Index FELL sharply, DOWN -11.0% to 319.0, BELOW the 13-week average of 411.0 and -55.9% BELOW the year-ago level. Non-seasonally adjusted the index FELL -11.2%.
 
The Purchase Index FELL sharply, DOWN -11.9% to 225.0, BELOW the 13-week average of 254.0 and -15.2% BELOW the year-ago level.
 
The Refinancing Index FELL sharply, DOWN -9.5% to 827.0, BELOW the 13-week average of 1284.0 and -75.8% BELOW the year-ago level.
 
The effective (adjusted for points paid) 30-year mortgage rate FELL -4bps to 5.7%, ABOVE the 13-week average of 5.01% and 75bps ABOVE the year-ago level.