Home Purchase Activity Nears Pandemic Levels

Published by FOX Business | July 27, 2022

The survey found stabilizing mortgage rates and increases in for-sale inventory

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey found mortgage applications fell 1.8% for the week ending July 22, 2022, from the previous week.

The decrease was the fourth week in a row as home purchase activity nears pandemic levels.

“Mortgage applications declined for the fourth consecutive week to the lowest level of activity since February 2000.”

–Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association

The survey comes as inflation woes and market uncertainty have sparked worry in potential buyers, causing them to avoid entering the market, Kan said.

“Increased economic uncertainty and prevalent affordability challenges are dissuading households from entering the market, leading to declining purchase activity that is close to lows last seen at the onset of the pandemic,” he added. “Weakening purchase applications trends in recent months have been consistent with data showing a slowdown in sales for newly constructed homes and existing homes.”

Among the turmoil, Kan said the data showed a stabilization in mortgage rates. He also expressed optimism for the coming months.

“A potential silver lining for the housing market is that stabilizing mortgage rates and increases in for-sale inventory may bring some buyers back to the market during the second half of the year,” Kan said.

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