Mortgage applications increased in the latest weekly survey

by calculated risks 11/16/2022 07:00:00 AM

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

Mortgage applications increased 2.7 percent over the previous week, according to Mortgage Bankers Association (MBA) Weekly Mortgage Application Survey data for the week ending November 11, 2022. This week’s results include an adjustment for Veterans Day.

… The refinancing index is down 2 percent from the previous week and down 88 percent from the same week a year ago. The seasonally adjusted Buy Index is up 4 percent from the previous week. The unadjusted Buy Index was down 10 percent from the previous week and it was 46 percent lower than in the same week one year earlier.

Mortgage rates fell last week as signs of slowing inflation pushed Treasury yields lower. “The 30-year flat rate experienced the largest one-week drop since July 2022, falling to 6.9 percent,” said Joel Kahn, MBA Vice President and Deputy Chief Economist. Application activity, adjusted for the Veterans Day holiday, increased in response to lower prices — driven by a 4 percent rise in home orders. Applications for all loan types increased, and the average purchase loan fell to its smallest amount since January 2021. It remained Refinancing activity is down, down 88 percent over the year. There is very little incentive to refinance at much higher rates than there were last year.”

The average contract interest rate for 30-year fixed-rate mortgages with matching loan balances ($647,200 or less) fell to 6.90 percent from 7.14 percent, with the score down to 0.56 from 0.77 (including origination fees) for 80 percent from Loan to – Loan Value Ratio (LTV)
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 at 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 46% year over year without adjustment.
The buying index is 7% 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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