A real estate agent with an ‘Open House’ sign in the front yard of a home for sale.
Ty Wright | Bloomberg | Getty Images
High prices and low supply are finally taking some of the heat out of the housing market.
Even with interest rates falling slightly, mortgage application volume fell 4% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. It fell to the lowest level since February 2020.
Applications for a mortgage to purchase a home fell 3% for the week and were 2% lower than a year ago. This is the second straight week that purchase demand was lower than a year earlier, even though mortgage rates are still lower.
Pending home sales, which are counted by signed contracts and are therefore an indicator of future closed sales, dropped a wider-than-expected 4.4% in April, according to the National Association of Realtors.
Buyers are clearly starting to hit an affordability wall. This…