Mortgage Bankers Association

The overall number of applications decreased for the fourth straight week, but average loan sizes headed back up, according to the Mortgage Bankers Association.

Overall application activity was down by more than 40% compared with one year ago, the Mortgage Bankers Association found.

Credit availability also tightened in January, contributing to early 2022’s lending slowdown, according to the Mortgage Bankers Association.

Steadily climbing rates have contributed to a 40% decline in loan activity from one year ago.

But refinances came in 50% below levels from a year ago, with rate-and-term activity falling by over 40% in the third quarter of last year, according to TransUnion.

And a recent slowdown in government-backed loan issuance is pushing average purchase amounts to another record high.

Despite declining rates, refinancing volume fell, while purchases slowed even further after dipping to its lowest point in over a year.

A hike in guarantee fees charged to lenders for the companies’ backing of loans was due to expire this year, but lawmakers now want to extend it to raise $21 billion for the bipartisan package.

Two large government-sponsored enterprises added a notification period for tenants in collateral properties on Wednesday while a trade group and public agencies stepped up efforts to connect renters with aid.

Such applications have declined on an annual basis for the past three months, but overall weekly numbers increased due to a jump in refinances amid plummeting rates.