News Mortgage News Higher Mortgage Rates Lead to Fewer Takers Off the Charts: The Visual Says It All By Diccon Hyatt Updated on May 26, 2022 Fact checked by Helen Reis Fact checked by Helen Reis Helen is the senior news editor for The Balance and a veteran journalist with more than 17 years of experience, mostly in business and finance news. She is passionate about making complicated topics easy for everyone to understand and compulsive about accuracy and transparency. learn about our editorial policies Photo: Westend61 / Getty Images The recent spike in borrowing costs has made buying a home increasingly unappealing. In fact, the volume of mortgage applications among home purchasers hasn’t been this slow since the pandemic’s early days. Despite a tiny uptick last week, the Mortgage Bankers Association’s Purchase Index—a measure of applications—stayed near its lowest level since May 2020, the chart below shows. The latest figures add to recent evidence that the hot pandemic housing market is starting to cool off. Mortgage rates hovering near their highest since 2009 have jacked up monthly payments to levels unaffordable to many potential buyers, and are a grim contrast to the record low rates seen within the last two years. With so many would-be buyers being priced out by those higher rates, the pandemic-era real estate frenzy is starting to die down. “Higher rates, low inventory, and high prices are keeping prospective buyers out of the market,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting, wrote in a commentary. Have a question, comment, or story to share? You can reach Diccon at email@example.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning! Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Mortgage Bankers Association. "Mortgage Applications Decrease in Latest MBA Weekly Survey."