US Mortgage Applications Slip to Three-Year Low

Source: Mortgage Bankers Association

Mortgage applications declined to the lowest level in over three years in the past week, dragged by supply and affordability issues. XHB is down 1.17%, while ITB is down 1.06%.

• Mortgage applications for the week ending May 27, 2022, declined by 2.3% from the previous week. This is the lowest level since December 2018.
• Purchase applications were 14% lower than in the same period in 2021, with higher activity seen in larger loan sizes.
• Strong demand is seen in the upper end of the market, with buyers not as affected by supply and affordability issues.
• The Refinance Index posted a 5% decline from the past week and a 75% drop from the comparable period in 2021.
• The seasonally adjusted Purchase Index fell by 1% from the past week, while the unadjusted index fell 2% from the previous week.
• MBA Associate Vice President Joel Kan said mortgage rates have already fallen in four out of the past five weeks, given the decline in Treasury yields.