Mortgage applications sink

[tsptalk]

Mortgage applications sink to their lowest level since before the pandemic hit

Mortgage applications decreased 1.8% last week, according to the Mortgage Bankers Association’s seasonally adjusted index, falling to the lowest level since the beginning of 2020.

Both refinance and purchase applications took a hit. Mortgage applications to refinance a home dropped 2% for the week and were 8% lower than a year ago.

The decline came even as mortgage rates fell.

https://www.cnbc.com/2021/07/07/mor...nk-to-lowest-level-since-before-pandemic.html

 

[Bullitt]

Wonder how much has to do with lending standards. There are only so many people that can qualify today and even if they can, many are being priced out of the market.

In 2005, lenders gave out some kind of adjustable rate loan to anyone who asked. Prices went up until the loans started to crack and available buyers dried up.

If prices rise this time until they get too high, there should still be plenty of buyers happy to absorb the lower prices. Despite rates not being as low as a few months ago, they're still at all time lows compared to historical standards.