Mortgage applications increased in the latest weekly survey

by calculated risks 11/23/2020 07:00:00 AM

From the MBA: Mortgage applications increase in the latest weekly MBA survey

Mortgage applications increased 2.2 percent from the previous week, according to data from the Mortgage Bankers Association (MBA) Weekly Mortgage Application Survey for the week ending November 18, 2022. Last week’s results include an adjustment to celebrate Veterans Day.

… The refinancing index is up 2 percent from the previous week and down 86 percent from the same week a year ago. The seasonally adjusted Buy Index is up 3 percent from the previous week. The unadjusted purchase index was up 9 percent from the previous week and it was 41 percent lower than the same week a year ago.

“The 30-year fixed-rate mortgage fell for the second week in a row to 6.67 per cent and is now down about 50 basis points from the recent peak of 7.16 per cent a month ago,” said Joel Kahn, MBA Senior Vice President and Vice President. One”. economic. The decline in mortgage rates should improve the purchasing power of potential homebuyers, who have been largely sidelined as mortgage rates more than doubled in the past year. As a result of lower mortgage rates, purchase and refinance orders rose slightly last week. However, refinancing activity remains more than 80 percent below last year’s pace.

Kahn added, “With rates falling, ARM’s share of applications also fell to 8.8 percent of loans last week, down from a range of 10 and 12 percent over the past two months.”

The average contract interest rate for 30-year fixed-rate mortgages with matching loan balances ($647,200 or less) fell to 6.67 percent from 6.90 percent, with the score increasing to 0.68 from 0.56 (including origination fees) for 80 Percent of the loan-to-loan value (LTV) ratio.
Affirmations added

Click on the chart for a larger image.

The first graph shows the refinancing index since 1990.

With mortgage rates on the rise, the refinancing index has fallen sharply this year.

The refinancing index is near its lowest level since 2000.

The second chart shows the MBA’s mortgage buying index

Mortgage purchase index
According to the MBA, buying activity was down 41% year-over-year, unadjusted.
The buy index is 4% below the lowest level of the pandemic and slightly above the lowest level since 2015.

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

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