Mortgage activity hits 22-year low
Americans are continuing to slam the brakes on home borrowing.
Driving the news: Mortgage applications tumbled to a 22-year low, the Mortgage Bankers Association reported Wednesday based on its weekly Market Composite Index.
- That figure, which includes new mortgages and refinancing activity, declined 6.5% from a week earlier on a seasonally adjusted basis.
Context: The upswing in mortgage rates in 2022 has made it costlier to borrow, while consumers have grown more pessimistic about the economy.
- "These worsening affordability challenges have been particularly hard on prospective first-time buyers," Joel Kan, MBA’s associated vice president of economic and industry forecasting, said in a statement.
Flashback: Freddie Mac's chief economist said last week that the housing market is "normalizing."