Mortgage Bankers Association, the Washington DC-based association representing all porticoes of the US real estate finance industry, said in a statement on Wednesday that the number of applicants for home mortgages had muzzled to the lowest since early-2020 last week, as sky-scrapping home prices coupled with a steep lack in supplies had continued to weigh on US housing markets.
In point of fact, latest remarks from the Mortgage Bankers Association come over the heels of a sheer lag in supply of timbers among other raw materials, while a sweeping labour shortage had fanned up the flames further despite a drop in 30-year fixed mortgage rates.
Meanwhile, referring to a calamitous growth outlook in the US housing market which had anchored the economy along with mega-cap tech conglomerates during the pandemic-led restrictions last year, MBA’s associate Vice President of Economy and Industry Forecasting, Joel Kan said in a statement, “The 30-year fixed rate was 11 basis points lower than the same week a year ago, but many borrowers previously refinanced at even lower rates.
Refinance applications have trended lower than 2020 levels for the past four months”.
US mortgage application volumes hit lowest since early-2020
According to data from Mortgage Bankers Association (MBA) representing more than 2,200 real estate member companies, the MBA’s index for mortgage application fell 1.8 per cent during the week that ended on July 2 from a week earlier, marking up the weakest level since the January of 2020, while applications to refinance existing loans had been dropped by 2.3 per cent and home purchase filings had faltered by 1.1 per cent, too.
US mortgage buyer Freddie Mac said earlier in the day that the most popular 30-year fixed home loans dipped to 3.15 per cent last week compared to a reading of 3.20 per cent registered a week earlier.