Mortgage Market Index Drops to 22-year Low
- Jun 8, 2022
- Brian Turner
Total mortgage activities declined to 22-year low after rates rose to 5.4%. The index dropped 6.5% in the last week from the previous week but plunged 55% from a year ago.
Total mortgage application volume declined 6.5% to 288.4 for the week ending June 3 from the previous week and plunged 55% from a year ago to 288.4, according to the Mortgage Bankers Association's seasonally adjusted index.
The Refinance Index declined 6% from the previous week and dropped a whopping 75% from a year ago and the seasonally adjusted Purchase Index dropped 7% from the previous week and dropped 21% from a year ago.
The housing market slow down is in full swing after 30-year fixed rate mortgage rates in the week ending on June 3 rose to 5.4% from 5.33% in the previous week, according to the MBA release.
“The purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past months. These worsening affordability challenges have been particularly hard on prospective first-time buyers,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.