Mortgage Bankers Association

Refinances inched up 2% as interest rates dipped, but accounted for only 31% of activity, compared to two-thirds a year ago.

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

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

New single-family home mortgage applications, housing starts and industry sentiment all came in at their lowest since 2020.

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

Jumbo and adjustable-rate offerings increased during the month, but that was offset by a decline in government loans, leading to an overall drop in MBA’s credit availability index.

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%.

The industry veteran serves on Mortgage Bankers Association board of directors and co-leads its IMB executive council.

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.

While the purchase index registered a tiny uptick, activity has fallen to nearly the same level seen during the first months of the pandemic shutdown.

A sustained downturn in 2022 activity has also led the Mortgage Bankers Association to revise its originations forecast for the year.

A 5% surge in purchase applications drove up overall activity, while average loan amounts also increased across all categories.

Purchase numbers came in higher for both conventional and government activity, while the average loan amount shows signs of easing.

Surging interest rates have pushed refinance applications down by over 70% in a year, while ARMs have doubled their share in three months.

Meanwhile, adjustable-rate mortgages saw their largest volume share since 2019.

Refinances now also make up less than 40% of new applications, with numbers at their lowest since 2019, according to the Mortgage Bankers Association.