Alex Bombino

Recently, total mortgage applications slipped 1%, marking the fourth drop in five weeks as borrowing costs stayed elevated and buyer demand remained softer yearly nationwide.
Purchase activity edged ↓0.3% MoM for the week and ran 5% below the yearly pace, while the unadjusted measure stayed below yearly levels again.
Refinance applications fell 2% for the week and were 17% lower yearly, showing how near-7% borrowing costs kept many owners sidelined recently.
Government-backed lending showed added softness: purchase applications in one program dropped 7%, and that program's share of activity eased from 17% to 16%.
A trade group's updated outlook projected challenging conditions through end-2026 and into 2027, with 10-yr Treasury yields near 5% supporting mortgage rates near 7%.

Mortgage Demand Under Pressure

The program relied mainly on payroll taxes, but a smaller labor force and more retirees were expected to strain funding in coming years.
Officials projected the trust funds could run dry in late 2032, potentially forcing a low-20% benefit cut if lawmakers did not act.
With current avg. retirement benefits near $2.1K, a low-20% reduction would trim roughly $460 monthly, leaving typical checks near $1.6K for retirees.
Smaller base benefits would also mean smaller cost-of-living increases on a dollar basis, because inflation adjustments are calculated as percentages each year.
Cuts were not inevitable; lawmakers had avoided them before. Still, workers could save more, work longer, or revisit budgets and housing plans.