Mortgage applications

Average purchase sizes have also fallen by almost 11% after reaching a record high this spring.

Alternative data verifications used in non-qualified mortgage underwriting have increasingly been used by government-sponsored enterprises in response to expansive Biden-era housing goals, volatile rates and evolving technology.

Purchases and refinances both came in lower, with overall volumes 60% below numbers from a year ago.

Although refinances picked up after the July 4th holiday, they failed to offset a larger decline in purchases.

Average purchase-loan amounts shrank for the second week in a row and are currently 12% below their record size in March.

Overall mortgage volumes flattened last week, but average loan amounts, particularly for purchases, are shrinking according to the Mortgage Bankers Association.

But total volume is still 53% below last year’s level, while Fannie Mae found the dollar value of refinances down by over 70%.

Smaller average purchase-loan sizes, which contracted by almost 2%, point to potential signs of diminishing enthusiasm among homebuyers.

Elevated prices coupled with higher mortgage rates are leading to affordability challenges that have reduced borrowing volumes.

Refinances and purchases both slowed last week, while average loan sizes registered an uptick.