Even though home prices are skyrocketing (Case-Shiller 20 up 19% YoY in June), mortgage purchase applications are not growing at the speed of home price growth. Some of it is the rise in the S&P 500 and other stock market indices allowing some to pay cash for a home (30% according to Redfin).
Mortgage applications decreased 2.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 27, 2021.
The Refinance Index decreased 4 percent from the previous week and was 2 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1 percent from one week earlier.
The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 16 percent lower than the same week one year ago.