Record Low Mortgage Volume Index Signals Economic Downturn

Mortgage applications have reached a 28-year low as interest rates continue to rise, with the Mortgage Brokers Association reporting a 6.9% decrease in the Market Composite Index. The Refinance Index also dropped by 10%, and the purchase index decreased by 6%. The 30-year fixed mortgage rate has risen to 7.70%, the highest level since November 2000, leading to reduced purchasing power and a lack of available inventory. Loan sizes have also declined, and there has been an increase in the share of FHA and VA applications.