Mortgage application activity has remained at 22-year lows since March. All around application activity declined last week, partially due to the holiday shortened business week. The Mortgage Banker Association said applications declined 1.7% on a seasonally adjusted basis, but was down 13% on an unadjusted basis. The refinance index increased 2% from the previous week, but is down 80% year over year. The purchase index was down 4% with seasonal adjustment and was 14% lower before the adjustment compared to the week before. The index was down 18% from its level year over year.
Mortgage rates were mostly unchanged, but applications declined for the second straight week. Purchase applications for all types of loans, conventional and government, continue to be weaker due to higher rates and worsening economic outlook. March 2022 set a record average purchase price of $460,000. The average home value currently, according to Zillow’s Home Value Index, is currently around $355,000. This value is seasonally adjusted and only includes the middle tier price of home, so the actual number could be much higher. The average purchase loan size was $415,000 last week, pulled lower by the potential moderation of home-price growth and weaker purchase activity at the upper end of the market.
