by calculated risks 11/1/2023 07:00:00 AM
From the MBA: Mortgage applications increase in the latest weekly MBA survey
Mortgage applications increased 1.2 percent from the previous week, according to data from the Mortgage Bankers Association (MBA) Weekly Mortgage Application Survey for the week ending Jan. 6, 2023.
… The refinancing index is up 5 percent from the previous week and down 86 percent from the same week a year ago. The seasonally adjusted Buy Index is down 1 percent from the previous week. The unadjusted purchase index was up 47 percent from the previous week and it was 44 percent lower than in the same week one year earlier.
“Mortgage rates fell last week as markets reacted to data showing a weakening economy and sluggish wage growth. All types of loans in the survey saw interest rates decline, with the 30-year fixed rate dropping to 6.42 percent,” said Joel Kahn, vice president. The MBA and deputy chief economist said orders continued to falter due to broader weakness in the housing market and fell slightly for the week, with the index dropping to its lowest level since 2014. “There was an increase in refinancing activity as a result of a 16% drop in interest rates. basis points, as traditional and government refinancing applications increased. However, the overall pace of refinancing applications was lower than the averages for November and December 2022, and 80 percent lower than last year. Refinances were about 30 percent of all applications last week – well below the last decade’s average of 58 percent.
The average contract interest rate for 30-year fixed-rate mortgages with matching loan balances ($647,200 or less) fell to 6.42 percent from 6.58 percent, with points remaining at 0.73 (including origination fees) versus 80 percent. Loan-to-value ratio (LTV) loans.
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 will drop sharply in 2022.
The refinancing index last week was at its lowest level since 2000.
The second chart shows the MBA’s mortgage buying index
According to the MBA, buying activity was down 44% year over year without adjustment.
Note: red is a four-week average (blue is weekly).