Mortgage applications tumble to pre-pandemic low

US mortgage applications continued their downward trend this week, falling to their lowest level since December 2019.

Mortgage loan application volume posted a seasonally adjusted 13.1% decrease for the week ending Feb. 18, according to data from the Mortgage Bankers Association’s latest survey. Refinance application activity was down by 16%, and purchase applications fell 10% week over week. As a result, the refi share of mortgage activity dropped from 52.8% to 50.1%.

Joel Kan, AVP of economic and industry forecasting at MBA, said higher mortgage rates have shut off refinances and slowed purchase activity.