Mortgage applications increase in the latest weekly survey

by Calculated risk on 03/08/2022 07:00:00 AM

From MBA: Mortgage Applications Increase in Latest Weekly MBA Survey

Mortgage applications increased 1.2 percent from the previous week, according to the Mortgage Bankers Association (MBA) weekly mortgage application survey data for the week ending July 29, 2022.

…the refinancing index is up 2 percent from the previous week and down 82 percent from the same week a year ago. The seasonally adjusted purchasing index was up 1 percent from the previous week. The unadjusted purchasing index was up 1 percent from the previous week and it was 16 percent less than the same week a year ago.

Mortgage rates fell last week after another announcement of monetary policy tightening by the Federal Reserve, with more rate hikes likely in the future. As a result, Treasury yields have fallen, as investors continue to anticipate a weaker macroeconomic environment in the coming months. The 30-year flat rate saw the biggest weekly decline since 2020, dropping 31 basis points to 5.43 percent, said Joel Kahn, associate vice president of economic and industrial forecasting at the MBA. “The drop in rates has led to increases in refinancing and buyout requests, but compared to last year, activity remains low. Lower mortgage rates, combined with signs of more inventory flowing into the market, may lead to a pickup in buying activity.”

The average contract interest rate for 30-year fixed rate mortgages with matching loan balances ($647,200 or less) decreased to 5.43 percent from 5.74 percent, with points increasing to 0.65 from 0.61 (including construction fees) versus 80. percent loan to loan value ratio (LTV).
Confirmations added

Click on the chart for a larger picture.

The first chart shows the refinancing index since 1990.

With mortgage rates rising, the refinancing index has fallen sharply over the past several months.

The refinancing index is just above the lowest level since 2000.

The second chart shows the MBA Mortgage Purchase Index

Mortgage Buying Index
According to the MBA, purchasing activity is down 16% year over year, unadjusted.
The buy index is now only 14% above the pandemic low.

Note: Red averages four weeks (blue weekly).

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