Monday, September 15, 2025

US Mortgage Demand Plummets to Lowest Since Beginning of Pandemic

Despite historically low mortgage rates and a gradual shift towards permanent work-from-home flexibility, the demand for mortgages continues to fall, suggesting that low supply and sky-high property prices are pushing an increasing number of potential homeowners out of the real estate market.

According to the latest figures published by the Mortgage Banker’s Association (MBA), mortgage applications fell 1.8% last week, marking the second consecutive week of declines and the lowest level since the onset of the pandemic in 2020. Even as mortgage rates descended, home purchase applications decreased 1%, and are 14% lower compared to year-ago levels, while home refinance applications dropped 2% last week, and sat 8% lower than one year ago.

“Swift home-price growth across much of the country, driven by insufficient housing supply, is weighing on the purchase market and is pushing average loan amounts higher,” explained MBA associate vice president of economic and industry forecasting Joel Kan.

Mortgage rates tend to track closely to the 10-year Treasury yield, and declined even in the wake of a robust economic recovery. “Treasury yields have been volatile despite mostly positive economic news, including last week’s June jobs report, which showed ongoing improvements in the labor market. However, rates continued to move lower – especially late in the week,” said Kan. “The 30-year fixed rate was 11 basis points lower than the same week a year ago, but many borrowers previously refinanced at even lower rates.”


Information for this briefing was found via the MBA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Who Owns Nearly Half of Ontario’s Condo Market?

As it turns out, Ontario’s booming real estate market wasn’t booming because ordinary Canadians desperately...

Wednesday, February 8, 2023, 06:18:00 AM

Canadian Housing Starts Jumped 3.2% in May

Canadian housing starts posted another slight increase in May, rising by an annual pace of...

Tuesday, June 15, 2021, 02:41:00 PM

Canada’s Housing Crisis: New Projections Show Increased Supply Gaps in Key Provinces

The CMHC recently updated its June 2022 Supply Gaps Estimate (SGE) report that assesses the...

Sunday, September 17, 2023, 07:18:00 AM

Canadian Home Sales Drop by Record Amount Amid Coronavirus Pandemic

According to a recent report released by the Canadian Real Estate Association, home sales have...

Sunday, May 17, 2020, 03:08:00 PM

Value of Building Permits Plummet by Record 14.8% in May

Following what were four straight months of record-breaking gains, the value of building permits suddenly...

Saturday, July 10, 2021, 11:23:00 AM