Total mortgage application volume was down 0.5 percent from the previous week, and 13.5 percent lower year-over-year on a seasonally-adjusted annual basis, says the Mortgage Bankers Association.
Refinance applications also decreased last week, down 2 percent week-over-week and 28 percent YOY, one of the weakest readings in 20 years. CoreLogic says that more than 50 percent of all homeowners with a mortgage today have rates below 4 percent, and with added equity, are more likely to pursue a home equity line of credit, as opposed to a refinance loan, CNBC reports. “Financial market volatility in response to continued worries about trade resulted in both lower mortgage rates and a drop in applications last week,” said Mike Fratantoni, chief economist at the MBA.
“A shortage of inventory remains a significant constraint, but it is interesting to note that applications for government purchase loans fared better on the week, indicating that first-time buyers remain in the market,” said Fratantoni. The critical shortage of homes for sale continues to be the most formidable roadblock to a full housing recovery. Supplies are not getting much better, and home price gains are accelerating as buyers compete for the very few good listings on the market.
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