Mortgage Applications Hit ‘Lowest Since 1995,’ Says Reventure CEO; Nearly $2,800 Monthly Payments Weigh on Buyers

Nick Gerli, CEO of Reventure Consulting, says U.S. mortgage purchase applications have fallen to their lowest level since 1995 and are down 50% from the pandemic peak.

In a series of posts on X on Wednesday, Gerli said the typical monthly mortgage payment, including taxes and insurance, is about $2,800, or roughly 38% of a typical household’s gross pre-tax income, compared with a historical level of about 30%. He said mortgage rates around 7% are not the main reason mortgage purchase demand is so low, noting that demand remained weak even when rates were closer to 6%.

U.S. Mortgage Applications just fell back to the lowest level since 1995.

And are now down 50% from the pandemic peak.

Demand to buy with a mortgage today is shockingly at the same level as 31 years ago, even though U.S. population is 30% higher.

The reason demand is so low… pic.twitter.com/fy0bUw1HEs

— Nick Gerli (@nickgerli1) September 16, 2026

What The Data Shows

The comments came as mortgage applications declined in the latest Mortgage Bankers Association weekly survey. Total applications fell 4.1% for the week ended Sept. 11. The seasonally adjusted Purchase Index decreased 1% from the prior week, while the unadjusted Purchase Index fell 13% and was down 19% from the same week a year earlier.

The average contract rate for a 30-year fixed mortgage with conforming loan balances rose to 6.97% from 6.85%. MBA Deputy Chief Economist Joel Kan said higher mortgage rates caused many buyers to pause purchase decisions.

Kan noted that "ongoing market concerns over spiking energy prices, persistently high inflation, and future monetary policy pushed bond yields and mortgage rates higher last week.”

Home Prices And Rent

Gerli said affordability could improve through lower home prices, lower mortgage rates, or rising incomes. He said home prices have remained elevated while buyers have adjusted their price expectations downward.

Gerli also highlighted the gap between buying and renting, citing monthly costs of $2,833 to buy versus $1,950 to rent. He said the U.S. home value-to-rent ratio stands at 15.8, about 15% above the normal level.

Higher borrowing costs have also been reflected in mortgage rates as Treasury yields rose, with the 30-year Treasury yield previously reaching 5.323%.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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