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Mortgage activity hits 22-year low as rising rates bite housing market

Emily McCormick·Reporter
Wed, June 8, 2022, 10:22 AM · 2 min read

A closely watched gauge of mortgage application activity slid to a more than two-decade low last week, as elevated home prices and rising interest rates dragged further on purchase and refinancing activity.

The Mortgage Bankers Association's (MBA) weekly market composite index tracking mortgage loan application volume sank 6.5% during the period ending June 3. This represented a fourth consecutive weekly decline and extended a 2.3% drop from the prior week.

Refinance applications fell 6% week-on-week and were down 75% compared to the same time last year. Meanwhile, purchases fell 7% from the prior week, and on a seasonally unadjusted basis, were lower by 21% compared to last year.

“Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years," Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a press statement. "While rates were still lower than they were four weeks ago, they remained high enough to still suppress refinance activity. Only government refinances saw a slight increase last week."

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