The sky-high real estate bubble that has been inflating for many years now is showing signs of an impending burst as mortgage applications have crashed to a 22-year low. For the fourth straight week in a row, Mortgage Bankers Association (MBA) data shows, mortgage applications have been dropping by 6.5 percent week-over week to the lowest level since 2000.

Purchases fell more than refinancing applications, tumbling 6.1 percent week-over-week, as opposed to 5.6 percent week-over-week for refinances. Except for the time period during the Wuhan coronavirus (Covid-19) outbreak when mortgage offices were forced to close by the government, the current rate of home purchase applications is the weakest it has been since November of 2016.

"This should be no surprise since, as Political Calculations details, after reaching a new low for affordability in March 2022, the median new home in the U.S. became even less affordable for the typical American household in April 2022," reports Zero Hedge.