Have we seen purchase mortgage applications this low. 1995. Objectively speaking, how can we see a "recovery" with this data?
A 39% year over year drop and the worst performance since 1995. If it weren't for low housing inventory and a strong job market we would already be witnessing a crash.
People are converting to this new type of mortgage.
Recent figures--Mortgage applications in the US rose 2.9% in the week ended March 24th, 2023, a fourth consecutive week of increases, and the longest winning streak in four years, data from the Mortgage Bankers Association showed. Applications to refinance a home loan increased 4.8% and those to purchase a home loan were up 2%. Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) fell by 3bps to 6.45%, declining for a third consecutive week to the lowest level since mid-February. "While the 30-year fixed rate remained 1.65 percentage points higher than a year ago, homebuyers responded, leading to a fourth straight increase in purchase applications. Home price growth has slowed markedly in many parts of the country, which has helped to improve buyers' purchasing power", MBA Vice President and Deputy Chief Economist Joel Kan said. source: Mortgage Bankers Association of America