Mortgage Applications Plunge Most Since 2015 As Rates Soar

A week ago we highlighted the tumble in US mortgage applications, and things just got worser-er. As mortgage rates extend 4-year highs, home purchase applications plunged 15% in the last few weeks - the biggest drop since Feb 2015.

In fact, mortgage applications to purchase a home are now unchanged since Nov 2015. It seems the affordability barrier just reached its upper limit...

 

Will higher rates break housing market momentum?

The following chart suggest 'yes' - that surge in rates will have a direct impact on home sales (or prices will be forced to adjust lower) as affordability collapses...