Latest News

MBA: Mortgage Applications Increase in Latest Weekly Survey

0

by Calculated Risk on 9/21/2022 07:00:00 AM

From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey

Mortgage applications increased 3.8 percent from
one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending September 16, 2022. Last week’s results include an adjustment
for the Labor Day holiday.

… The Refinance Index increased 10 percent from the previous
week and was 83 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 11 percent
compared with the previous week and was 30 percent lower than the same week one year ago.

“Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September
meeting, where it is expected that they will announce – in their efforts to slow inflation – another sizable
short-term rate hike. Mortgage rates followed suit last week, increasing across the board, with the 30-year
fixed rate jumping 24 basis points to 6.25 percent – the highest since October 2008,” said Joel Kan,
MBA’s Associate Vice President of Economic and Industry Forecasting. “As with the swings in rates and
other uncertainties around the housing market and broader economy, mortgage applications increased for
the first time in six weeks but remained well below last year’s levels, with purchase applications 30
percent lower and refinance activity down 83 percent. The weekly gain in applications, despite higher
rates, underscores the overall volatility right now as well as Labor Day-adjusted results the prior week.”

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) increased to 6.25 percent from 6.01 percent, with points decreasing to 0.71 from 0.76
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added

Click on graph for larger image.

The first graph shows the refinance index since 1990.

With higher mortgage rates, the refinance index has declined sharply this year.
The refinance index is just above the lowest level since the year 2000.
The second graph shows the MBA mortgage purchase index

According to the MBA, purchase activity is down 30% year-over-year unadjusted.
The purchase index is only 10% above the pandemic low.

Note: Red is a four-week average (blue is weekly).

Europe burns cash to help businesses in deepening energy crisis

Previous article

Britain proposes insurance shake-up after Grenfell Tower fire

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News