Tom Rood, Managing Director of SitusAMC, discusses the increased cost of building and buying a home in the current real estate market
Mortgage applications fell last week for the third straight week as they are now at their lowest level since 2000, according to a new survey.
On Wednesday, the Mortgage Bankers Association (MBA) released its weekly mortgage applications survey, which showed the Market Composite Index, which measures the volume of loan applications, fell a seasonally adjusted 6.3% last week.
On an unadjusted basis, the index rose 17% compared to the previous week.
Homes in the Harris Ranch community in Boise, Idaho, on Friday, July 1, 2022. (Jeremy Erickson/Bloomberg via Getty Images/Getty Images)
“Mortgage applications fell for the third straight week, hitting their lowest level since 2000. Similarly, demand for refinancing continues to fall as most mortgage rates are more than two percentage points higher than a year ago, and MBA’s refinancing index is also falling to a 22-year low,” said Joel Kan, associate vice president of economic and industry forecasts at MBA. “Buying activity declined in both conventional and government credit amid the weakening economic outlook, high inflation and ongoing Affordability challenges impacting buyer demand. The decline in recent purchase requests is consistent with slower construction activity due to lower buyer traffic and ongoing building material shortages and higher costs.”
STOCK MARKET NEWS: SHARES HIGHER EARLY WEDNESDAY, CARVANA BANNED FROM ILLINOIS FOR THE SECOND TIME
Homes in Boise, Idaho, U.S., on Friday, July 1, 2022. (Jeremy Erickson/Bloomberg via Getty Images/Getty Images)
STILL TIME TO SAVE: 10 AND 15 YEARS MORTGAGE INTEREST RATES HOLD
The Funding Index and Purchasing Index posted similar declines of 4% and 7%, respectively, from the previous week. The refinancing index is now 80% lower than a year ago.
The FHA share of total applications increased to 12.4% from 11.7% the previous week, while the VA share of total applications fell to 10.6% from 11.2% the previous week.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The survey covered over 75% of all US home mortgage applications and has been conducted weekly since 1990.