Weekly Mortgage Applications Fall 29% As Homebuyers Pull Back

In the time of the coronavirus, Americans are not in the mood to buy homes. Considering the high mortgage interest rates in addition to the economic shutdown and unsteady stock market, it makes sense. The total mortgage application volume fell 29.4 percent last week from the prior week as the 30-year fixed-rate mortgage hit the highest levels since January—3.82 percent for a 20 percent down payment. With all the uncertainty and disruption going on worldwide, the news isn’t shocking, but it still stings as one more reminder of the great spring season that could have been.

An increase in interest rates, combined with a massive shutdown of the economy caused homeowners and potential homebuyers to back away from the mortgage market.

Total mortgage application volume fell 29.4% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 3.82% from 3.74%, with points decreasing to 0.35 from 0.37 (including the origination fee) for loans with a 20% down payment. That is the highest level since mid-January.

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