{"id":1222,"date":"2022-05-27T18:02:11","date_gmt":"2022-05-27T22:02:11","guid":{"rendered":"https:\/\/www.realtyhop.com\/mortgage-center\/?p=1222"},"modified":"2023-07-22T13:36:24","modified_gmt":"2023-07-22T17:36:24","slug":"mortgage-applications-dropped","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/","title":{"rendered":"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0"},"content":{"rendered":"

With home prices skyrocketing and demand far outstripping supply over the last couple of years, fewer Americans can afford a home. <\/span>High interest rates<\/span><\/a> also make buying a home a mere fantasy, as rates on a 30-year fixed-rate mortgage<\/span> sit at 5.25%<\/span><\/a> as of the week ending May 19th, compared to 3.11% at the end of December, according to the St. Louis Fed.\u00a0<\/span><\/p>\n

The Mortgage Bankers Association (MBA) records a slightly higher contract interest rate, 5.49%, for 30-year fixed-rate mortgages with conforming loan balances of $647,200 or less. Interest rates for 30-year fixed-rate mortgages with jumbo loan balances (more than $647,200) were lower, at 5.03%.\u00a0<\/span><\/p>\n

According to the <\/span>MBA’s Market Composite Index<\/span><\/a>, mortgage applications declined 11% during the week ending May 13th. Although applications can vary from week to week, the annual decline was 15% less than the previous year.\u00a0<\/span><\/p>\n

“Mortgage applications decreased for the first time in three weeks, as mortgage rates \u2014 despite declining last week \u2014 remained over two percentage points higher than a year ago and close to the highest levels since 2009,” Joel Kan, associate vice president of economic and industry forecasting at MBA, said in a statement.<\/span><\/p>\n

The MBA data broke down application activity further by segment. Refinance applications decreased 9.5% over the week, with a seasonally adjusted drop of 12%. The refinancing side of the market exploded after interest rates cratered in 2020 and into 2021. However, refinancing is down 75.8% compared to May 2021, as interest rates have approximately doubled since the early days of the pandemic.\u00a0<\/span><\/p>\n

The refinance share of all applications was around 33%, still a sizable percentage of all applications. Other <\/span>types of mortgages<\/span><\/a> that formed a sizable portion of the total applications were FHA loans at 11.1%, VA loans at 10.5%, and adjustable-rate mortgages at 10.3%.\u00a0<\/span><\/p>\n

The MBA also released recent forecast data, which predicted fewer home sales, resulting in fewer mortgage originations. According to the MBA, mortgage organizations in 2022 will total $2.5 trillion this year, which is paltry compared to 2021’s total of $3.9 trillion. The MBA also predicts home sales in 2022 will total 5.9 million, only a slight decrease from 2021’s 6.1 million.\u00a0<\/span><\/p>\n

High home prices and mortgage interest rates are the most important factors affecting potential buyers’ ability to purchase a house, but there are other factors. General economic factors such as <\/span>inflation<\/span><\/a> are also major concerns for prospects. As the cost of daily necessities goes up, the ability to purchase a home only declines. In April 2022, the annual interest rate was a whopping 8.3%, the highest level in over 40 years.\u00a0<\/span><\/p>\n

“General uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search,” Kan said.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

With home prices skyrocketing and demand far outstripping supply over the last couple of years, fewer Americans can afford a home. High interest rates also make buying a home a mere fantasy, as rates on a 30-year fixed-rate mortgage sit at 5.25% as of the week ending May 19th, compared to 3.11% at the end […]<\/p>\n","protected":false},"author":3,"featured_media":1223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-1222","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\nSkyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0 - RealtyHop Mortgage Center<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0 - RealtyHop Mortgage Center\" \/>\n<meta property=\"og:description\" content=\"With home prices skyrocketing and demand far outstripping supply over the last couple of years, fewer Americans can afford a home. High interest rates also make buying a home a mere fantasy, as rates on a 30-year fixed-rate mortgage sit at 5.25% as of the week ending May 19th, compared to 3.11% at the end […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/\" \/>\n<meta property=\"og:site_name\" content=\"RealtyHop Mortgage Center\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-27T22:02:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-22T17:36:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"343\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Shane Lee\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shane Lee\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/\",\"url\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/\",\"name\":\"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0 - RealtyHop Mortgage Center\",\"isPartOf\":{\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg\",\"datePublished\":\"2022-05-27T22:02:11+00:00\",\"dateModified\":\"2023-07-22T17:36:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/#\/schema\/person\/8cce324bd04987aa7dbe03a4a2a3eeee\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#primaryimage\",\"url\":\"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg\",\"contentUrl\":\"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg\",\"width\":600,\"height\":343},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.realtyhop.com\/mortgage-center\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/#website\",\"url\":\"https:\/\/www.realtyhop.com\/mortgage-center\/\",\"name\":\"RealtyHop Mortgage Center\",\"description\":\"RealtyHop Mortgage Center\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.realtyhop.com\/mortgage-center\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/#\/schema\/person\/8cce324bd04987aa7dbe03a4a2a3eeee\",\"name\":\"Shane Lee\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.realtyhop.com\/mortgage-center\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5dd9186563dda776dd081f8cfc7a8a67f6e878198225fc4a9cb6a59036bd7169?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5dd9186563dda776dd081f8cfc7a8a67f6e878198225fc4a9cb6a59036bd7169?s=96&d=mm&r=g\",\"caption\":\"Shane Lee\"},\"url\":\"https:\/\/www.realtyhop.com\/mortgage-center\/author\/alsoshane\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0 - RealtyHop Mortgage Center","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/","og_locale":"en_US","og_type":"article","og_title":"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0 - RealtyHop Mortgage Center","og_description":"With home prices skyrocketing and demand far outstripping supply over the last couple of years, fewer Americans can afford a home. High interest rates also make buying a home a mere fantasy, as rates on a 30-year fixed-rate mortgage sit at 5.25% as of the week ending May 19th, compared to 3.11% at the end […]","og_url":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/","og_site_name":"RealtyHop Mortgage Center","article_published_time":"2022-05-27T22:02:11+00:00","article_modified_time":"2023-07-22T17:36:24+00:00","og_image":[{"width":600,"height":343,"url":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg","type":"image\/jpeg"}],"author":"Shane Lee","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Shane Lee","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/","url":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/","name":"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0 - RealtyHop Mortgage Center","isPartOf":{"@id":"https:\/\/www.realtyhop.com\/mortgage-center\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#primaryimage"},"image":{"@id":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#primaryimage"},"thumbnailUrl":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg","datePublished":"2022-05-27T22:02:11+00:00","dateModified":"2023-07-22T17:36:24+00:00","author":{"@id":"https:\/\/www.realtyhop.com\/mortgage-center\/#\/schema\/person\/8cce324bd04987aa7dbe03a4a2a3eeee"},"breadcrumb":{"@id":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#primaryimage","url":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg","contentUrl":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-content\/uploads\/sites\/2\/2022\/05\/home-prices-on-the-rise-scaled-1.jpg","width":600,"height":343},{"@type":"BreadcrumbList","@id":"https:\/\/www.realtyhop.com\/mortgage-center\/mortgage-applications-dropped\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.realtyhop.com\/mortgage-center\/"},{"@type":"ListItem","position":2,"name":"Skyrocketing Home Prices Contribute to a Drop in Mortgage Applications\u00a0"}]},{"@type":"WebSite","@id":"https:\/\/www.realtyhop.com\/mortgage-center\/#website","url":"https:\/\/www.realtyhop.com\/mortgage-center\/","name":"RealtyHop Mortgage Center","description":"RealtyHop Mortgage Center","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.realtyhop.com\/mortgage-center\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.realtyhop.com\/mortgage-center\/#\/schema\/person\/8cce324bd04987aa7dbe03a4a2a3eeee","name":"Shane Lee","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.realtyhop.com\/mortgage-center\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5dd9186563dda776dd081f8cfc7a8a67f6e878198225fc4a9cb6a59036bd7169?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5dd9186563dda776dd081f8cfc7a8a67f6e878198225fc4a9cb6a59036bd7169?s=96&d=mm&r=g","caption":"Shane Lee"},"url":"https:\/\/www.realtyhop.com\/mortgage-center\/author\/alsoshane\/"}]}},"modified_by":"lawrence","_links":{"self":[{"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/posts\/1222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/comments?post=1222"}],"version-history":[{"count":1,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/posts\/1222\/revisions"}],"predecessor-version":[{"id":1224,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/posts\/1222\/revisions\/1224"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/media\/1223"}],"wp:attachment":[{"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/media?parent=1222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/categories?post=1222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realtyhop.com\/mortgage-center\/wp-json\/wp\/v2\/tags?post=1222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}