US Mortgage Applications See Significant Weekly Decline

According to the latest Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, there was a noticeable 4.2% drop in mortgage applications across the United States for the week ending April 25. This decline marks a concerning trend for the housing market, reflecting broader economic uncertainties.

Interest Rates and Points Adjust Slightly

The survey highlighted a minor adjustment in the average contract interest rate for 30-year fixed-rate mortgages, which decreased slightly to 6.89% from 6.90%. Conversely, the points increased to 0.67 from 0.66, including the origination fee for loans with a 20% down payment.

Economic Uncertainty Impacts Home Purchase Activity

Joel Kan, MBA’s vice president and deputy chief economist, commented on the findings, stating, "Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February."