Mortgage Credit Availability Declines To 2014 Levels Despite Fed Easing

Mortgage applications decreased 0.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 6, 2020.

The Refinance Index increased 1 percent from the previous week and was 67 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 16 percent higher than the same week one year ago.

Yes, Covid struck and moved the purchase applications window out 2 months.

Mortgage refi applications are level after the Covid burst in March, despite declining mortgage rates (yellow).

Mortgage credit availability is now the lowest since 2014 during The Fed’s QE2, but declined substantially during the Covid epidemic.

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