Applications for mortgages have fallen to the lowest rate since 1995 across the United States while mortgage rates increased for the sixth week running, according to the Mortgage Bankers Association’s seasonally adjusted index.
The total number of applications dropped 6.9 percent compared to last week, with that figure increasing to a whopping 21 percent drop if compared to this time last year. Similarly, applications to refinance homes fell ten percent over the past week and 12 percent compared to last year.
“Both purchase and refinance applications declined, driven by larger drops for conventional applications,” said the MBA’s Vice President and Deputy Chief Economist, Joel Kan in a statement.
“Purchase applications were 21 percent lower than the same week last year, as home buying activity continues to pull back given reduced purchasing power from higher rates and the ongoing lack of available inventory,” Kan added.
Homeownership has been in precipitous decline across the country, with Virginia witnessing the largest drop at 8.8 percent since 2000. Worse still, renting affordability is at an all-time low as the average American is forced to pay over $2,600 per month.
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