(MBA) The US Market Composite Index, gauging mortgage purchase and refinance applications, plunged by 6.5% last week to 288.4. The index is at the lowest in 22 years and was below 645.4 last year.
The declining applications came the same week that the rate on the 30-year loan increased to 5.4%, a U-turn after posting declines in the prior three weeks.
The MBA report showed that the Purchase Composite Index, which measures all mortgage applications for purchasing single-family homes, declined by 7.1% from the prior week. The Refinance Index fell by 5.6%.
The falling mortgage applications come amid growing concerns about a tighter economy and surging inflation. The uptick in mortgage rates has reflected the Federal Reserve’s signals of more aggressive economic tightening, which has dampened loan demand.
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