Purchase rate locks drop below pre-pandemic levels

Abstract

July's purchase rate lock activity fell to a low not seen since COVID-19 arrived in the U.S. The rate at which homebuyers locked in their financing costs during the month was 11% slower than it was prior to the pandemic and down 28.5% from a year ago. The average purchase price of homes was down by 2.2% in July. Lenders may be relaxing their underwriting a little to attract some borrowers to the cash-out market. But affordability still appears to be cooling housing demand. In July, affordability still seems to becooling housing demand, according to a recent rate relief and a rise in weekly application volumes and a increase in monthly application volumes.