Refinance dollar volume holds steady amid rising rate environment

Fannie Mae chief economist Doug Duncan commented: “Refinance application activity decreased slightly last week and has not changed meaningfully in the past four weeks. Compared to its level a year ago, refi activity is down by approximately 75%, reflecting the higher mortgage rate environment.”

Overall mortgage applications continued to be held down by declining homebuyer demand, as rising rates, challenging affordability, and a gloomier economic outlook kept buyers on the sidelines.

Read more: Mortgage applications hit 22-year low, lending activity suffers

Compared to the third quarter of 2020, when refinance lending was at its peak, the RALI dollar volume was down 80.8%. However, the refi dollar volume was 32.6% above the “refinance slowdown” levels in Q4 2018.