Mortgage Refinance Applications Are Collapsing. What’s the Impact on the Economy & Markets? | Wolf Street

And applications for mortgage refis have collapsed. The MBA’s weekly Refinance Mortgage Applications Index, released today, dropped to the lowest level since March 2019, down 62% from a year ago, and down 82% from the peak in March 2020:

…….cash-out refis boosted not only consumer spending but also the money flow into other assets, including housing, and thereby helped boost those asset prices, including in the housing market. And the further decline in cash-out refis will remove some of that fuel.

Mortgage Refinance Applications Are Collapsing. What’s the Impact on the Economy & Markets? | Wolf Street