No surprise here: normal home buyers have to divide a fixed-size pie, and if the bank's slice grows larger, the seller's slice must shrink

Home loan size retreats from record as mortgage application demand cools

According to the Mortgage Bankers Association, the average purchase loan size fell to $415,000 for the week ending July 8, down from $460,000 hit in March. 

Total mortgage application volume fell 1.7% on a seasonally adjusted basis last week compared to the previous week. The week's results included an adjustment for the observance of Independence Day. 

HOME SALE CANCELLATIONS HIT HIGHEST RATE SINCE START OF PANDEMIC

On a seasonally adjusted basis, mortgage applications to purchase a home fell 4% compared to the previous week. On an unadjusted basis, purchase applications fell 14% compared to the previous week and 18% compared to the same week a year ago.

"Purchase applications for both conventional and government loans continue to be weaker due to the combination of much higher mortgage rates and the worsening economic outlook," MBA associate vice president of economic and industry forecasting Joel Kan said in a statement.