by Calculated Risk on 7/06/2022 07:00:00 AM
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending July 1, 2022. This week’s results include a holiday adjustment to account for
early closings the Friday before Independence Day.
… The Refinance Index decreased 8 percent from the previous
week and was 78 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 4 percent from one week earlier. The unadjusted Purchase Index increased 7 percent
compared with the previous week and was 17 percent lower than the same week one year ago.
“Mortgage rates decreased for the second week in a row, as growing concerns over an economic
slowdown and increased recessionary risks kept Treasury yields lower. Mortgage rates have increased
sharply thus far in 2022 but have fallen 24 basis points over the past two weeks, with the 30-year fixed
rate at 5.74 percent,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry
Forecasting. “Rates are still significantly higher than they were a year ago, which is why applications for
home purchases and refinances remain depressed. Purchase activity is hamstrung by ongoing
affordability challenges and low inventory, and homeowners still have reduced incentive to apply for a
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) decreased to 5.74 percent from 5.84 percent, with points increasing to 0.65 from 0.64
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.