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.