Home purchase loans plummet to 12-year low as high mortgage rates wreak havoc on affordability
US home purchase loans have fallen to their lowest level in 12 years due to high mortgage rates and elevated home prices. In the first quarter of 2026, approximately 581,000 home purchase loans were originated, marking a 19% decline from the previous quarter. The overall residential mortgage originations also decreased, indicating a widespread slowdown in the housing market.
- ▪Home purchase lending dropped to its lowest level since 2014, with 581,000 loans originated in Q1 2026.
- ▪The average rate on a 30-year fixed mortgage increased from 6.16% to 6.46% in early April 2026.
- ▪Residential lending declined in 96.5% of the 200 metros analyzed, with purchase activity falling in 99% of them.
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Real Estate Home purchase loans plummet to 12-year low as high mortgage rates wreak havoc on affordability By Snejana Farberov Published May 28, 2026, 3:35 p.m. ET See more of our coverage in your search results. Add The New York Post on Google Originally Published by: Mortgage Rates Hit 6.53% Despite Looming Iran Peace Deal Mortgage Applications for Refinancing Drop 18% as Interest Rates Rise Yours, Mine, and the Mortgage: How Separate Accounts Affect Your Home Loan US home purchase lending plunged to its lowest level in 12 years at the start of 2026, dragged down by elevated home prices and mortgage rates stuck above 6% that sidelined many prospective buyers.
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