MBA: Mortgage Applications Rose 0.7% Last Week – NMP Skip to main content

MBA: Mortgage Applications Rose 0.7% Last Week

Sarah Wolak
Jun 29, 2022
Applications for home loans all but dried up, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 11

On an unadjusted basis, the Market Composite Index decreased 20%.

KEY TAKEAWAYS
  • Other adjustments included the Refinance Index, which increased 2% from the previous week and was 80% lower than the same week one year ago.
  • The refinance share of mortgage activity increased to 30.3% of total applications from 29.7% the previous week

Mortgage applications increased 0.7% from last week, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 24.

The Market Composite Index, a measure of mortgage loan application volume, inched up 0.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 20% compared with the previous week.

Other adjustments included the Refinance Index, which increased 2% from the previous week and was 80% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 0.1% from one week earlier, but the unadjusted Purchase Index decreased 21% compared with the previous week and was 24% lower than the same week one year ago.

“Mortgage rates continue to experience large swings. After increasing 65 basis points during the past three weeks, the 30-year fixed rate declined 14 basis points last week to 5.84%. Rates are still significantly higher than they were a year ago, when the 30-year fixed rate was at 3.2%,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The decline in mortgage rates led to a slight increase in refinancing, driven by an uptick in conventional loans. However, refinances are still 80% lower than a year ago and more than 60% below the historical average.”

Kan referenced the refinance share of mortgage activity, which increased to 30.3% of total applications from 29.7% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 10.1% of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $647,200 or less, decreased to 5.84% from 5.98%, with points decreasing to 0.64 from 0.77. The effective rate decreased from last week.

Other takeaways:

  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances greater than $647,200 decreased to 5.42% from 5.49%, with points decreasing to 0.28 from 0.45
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained at a stable 5.62%, with points decreasing to 1.15 from 1.18.
  • The average contract interest rate for 15-year fixed-rate mortgages slightly increased to 5.06% from 5.05%, with points decreasing to 0.72 from 0.86
  • The average contract interest rate for 5/1 ARMs decreased to 4.64% from 4.78%, with points decreasing to 0.72 from 0.84.
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