US mortgage purchase applications fall 60% from pandemic peak

by@TFTC21

Summary

US mortgage purchase applications have plummeted by 60% from their pandemic peak, now falling to levels not seen since 1995. This sharp decline is attributed to rising 30-year mortgage rates, which have recently reached approximately 7.5%, contributing to a sustained freeze in demand for home financing. Analysts highlight the significance of this trend, noting that most U.S. home purchases depend on mortgage financing, thereby intensifying pressure on sellers as buyer traffic diminishes.

Analysis

Housing market: Analysts say the decline is especially significant because most U.S. home purchases rely on mortgage financing, increasing pressure on sellers as buyer traffic weakens. Interest rates: Recent weakness in purchase applications has coincided with a renewed rise in 30-year mortgage rates to roughly 7.5%, contributing to a sustained demand freeze. Mortgage demand: The Mortgage Bankers Association purchase index has fallen toward mid-1990s territory, reflecting a prolonged retreat in financed home-buying activity.

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macropolitics

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