Housing affordability continues to be a major area of concern for many Americans, and this is made evident by the increased rate of mortgage application rejections. According to National Mortgage Professional, overall mortgage application rejections rose to 22.6% in October, compared with 13% in October 2023. Mortgage refinance rejection rates also climbed to 22% this October, compared with just 9.5% in October 2023.
After a horrendous year in 2023 for most mortgage companies, consumers’ average likelihood of applying for a mortgage decreased further in 2024 to 6.4%, from 6.7% in 2023. The average likelihood of applying for a mortgage refinance, meanwhile, rebounded from a series low of 3.5% in Oct. 2023 to 6.1% in Oct. 2024.
For the year overall, the average likelihood of applying for a mortgage refinance increased to 5.9% in 2024 from 4.7% in 2023. The average rejection rate for mortgage applications increased by 8.6 percentage points to 20.7% in 2024, well above the 2019 rate of 10.2%. Read more
