The share of mortgage applications continues to decrease
The amount of refinancing in dollars decreased even more in the last week of September mortgage rates reached new records.
Refi applications have been falling sharply for months, but last week saw their biggest non-holiday decline since March 2020, when many lenders temporarily suspended business due to the onset of the COVID-19 pandemic.
Fannie Mae reported a 21.8% decline in dollar RALI volume for the week. The index is down 83.8% from the same week last year, and its four-week moving average is down 9.4%. RALI numbers were down 19.8% for the week and down 82.7% year over year.
“With mortgage rates now sharply higher than this time last year, the RALI is at its lowest level since the refinancing slowdown in January 2014,” said Fannie Mae Chief Economist Sam Hutter.
RALI dollar volume was 22.3% below refinancing levels during the refinancing slowdown in the fourth quarter of 2014. Compared to the refinancing boom, it fell by 88.7%.