WASHINGTON (Pakistan Point News / Sputnik - 02nd June, 2022) The demand for home mortgages decreased by 1% compared to last week, down to its lowest level since December 2018, the Mortgage Bankers Association said on Wednesday.
"Mortgage rates fell for the fourth time in five weeks as concerns of weaker economic growth and the recent stock market sell-off drove Treasury yields lower," the MBA said in a press release. "Mortgage applications decreased to its lowest level since December 2018, as the purchase market continues to struggle with supply and affordability challenges."
The MBA credits the decline to the shrinking refinancing market led by larger decreases last week for the Federal Housing Administration and the Department of Veterans Affairs refinance applications.
The MBA said the so-called refinance index dropped 5 percent from the prior week and was 75 percent lower than the same time last year. In addition, purchase applications submitted last week were 14% lower than last year.
"Demand is high at the upper end of the market, and supply and affordability challenges are not as detrimental to these borrowers as they are to first-time buyers," the release said.
The MBA said the results are consistent with its May forecast which demonstrates a considerable decline in mortgage originations and home sales in 2022 than a year ago. Last year, the volume of total originations was $4 trillion. That figure is expected to fall more than 35 percent to $2.5 trillion in 2022.
