At a time of the year when mortgage application volume should be picking up, the Mortgage Bankers Association‘s Purchase Index, a measure of mortgage loan application volume for home purchases across the country, fell 4 percent over the past week and is running 21 percent lower on a year-over-year basis.

At the same time, the inventory of homes for sale across the country is 9.5 percent higher, and moving 23 percent slower, year-over-year.

Activity in the mortgage market is at its lowest level since the year 2000. It’s not a lack of inventory nor the weather that’s to be blamed. And in terms of interest rates, current rates are roughly 30 percent lower than before the housing market last peaked.

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Comments from “Plugged-In” Readers

  1. Posted by taco

    Would this be attributable to refinancing (or lack thereof?)
    [Editor’s Note: The “Purchase Index,” which is down 21 percent YOY, excludes refinancing activity. The Refinance Index dropped another 7 percent last week and is now at its lowest level since 2008.]

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