According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes fell 2 percent last week from one week earlier. The decline follows a 2 percent increase the week before and puts purchase loan demand 27 percent lower than it was last year at the same time. Joel Kan, MBA’s vice president and deputy chief economist, says elevated rates and low inventory are holding buyers back. “Overall applications declined, as both prospective home buyers and homeowners continue to feel the impact of these elevated rates,” Kan said. “The purchase market, which is still facing limited for-sale inventory and eroded purchasing power, saw applications down over the week and 27 percent behind last year’s pace.” Refinance activity also fell during the week, slipping 1 percent from the week before. The declines came during a week when average mortgage rates were up across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, FHA loans, 15-year fixed-rate loans, and 5/1 ARMs. (source)
