Housing shortage and rising prices push mortgage applications to February lows

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A hit or two of price rises and home shortages affect demand for mortgage

According to the latest weekly poll by the Mortgage Bankers Association, mortgage loan applications have dropped 4% over the past week.

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Even buying interest finally cooled as the seasonally adjusted buying index was down 3% from a week earlier.

“The number of mortgage applications has been declining for the second week in a row and the overall index is at its lowest level since February 2020,” said Joel Kahn, MBA’s deputy vice president of economic and industry forecasting. “Housing shortages, obstacles to accelerating new construction and rapidly rising house prices continue to stifle buying.”

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Refinancing was also hit as the index fell 5% from a week earlier.

“Refinancing activity has declined for the second week in a row, even though the 30-year fixed rate has dropped slightly to 3.17 percent. Although rates have been below 3.20 percent in the past month, they are still about 20-30 basis points above their all-time high. lows at the end of 2020, ”added Kahn.

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The survey covers over 75% of all US home mortgage applications and has been conducted weekly since 1990.

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