Skip to main content

MBA: Mortgage Applications Rose 6.6% Last Week

David Krechevsky
Jun 15, 2022
mortgage application

Both the Refinance and Purchase indices increased from a week earlier, but remain significantly lower as compared with last year.

KEY TAKEAWAYS
  • The survey for the week ending June 10, 2022, are compared to the prior week, which included an adjustment for the Memorial Day holiday, the MBA said.
  • The Refinance Index increased 4% from the previous week, but was 76% lower than the same week last year. 
  • The unadjusted Purchase Index increased 18% compared with the previous week and was 16% lower than the same week last year.

Rebounding from a week with a holiday, mortgage applications increased 6.6% last week from a week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

The survey for the week ending June 10, 2022, are compared to the prior week, which included an adjustment for the Memorial Day holiday, the MBA said.

The Market Composite Index, a measure of mortgage loan application volume, increased 6.6% on a seasonally adjusted basis from the previous week, MBA said. On an unadjusted basis, the index increased 17% compared with the previous week. 

Both the Refinance and Purchase indices increased from a week earlier, but remain significantly lower as compared with last year.

The Refinance Index increased 4% from the previous week, but was 76% lower than the same week last year. 

The seasonally adjusted Purchase Index increased 8% from a week earlier, while the unadjusted Purchase Index increased 18% compared with the previous week and was 16% lower than the same week last year.

"Mortgage rates increased for all loan types, with the 30-year fixed rate last week jumping 25 basis points to 5.65% — the highest level since 2008,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said. “Mortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace.”

Despite the increase in rates, Kan noted, “application activity rebounded following the Memorial Day holiday week, but remained 0.29% below pre-holiday levels. With mortgage rates well above 5%, refinance activity continues to run more than 70% lower than last year.”

He added, “Purchase applications were down more than 15% compared to last year, as ongoing inventory shortages and affordability challenges have cooled demand, coinciding with the rapid jump in mortgage rates.”

The refinance share of mortgage activity decreased to 31.7% of total applications from 32.2% the previous week. 

Other highlights: 

  • The adjustable-rate mortgage (ARM) share of activity decreased to 8.1% of total applications.
  • The FHA share of total applications increased to 11.8% from 11.3% the previous week. 
  • The VA share of total applications increased to 11.7% from 11.4% the previous week.
  • The USDA share of total applications increased to 0.6% from 0.5% the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.65% from 5.4%, with points increasing to 0.71 from 0.60 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 5.36% from 5.3%, with points increasing to 1.00 from 0.79 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 4.79% from 4.62%, with points increasing to 0.80 from 0.65 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

MBA’s Weekly Applications Survey covers over 75% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.

Published
Jun 15, 2022
First American: Real House Prices Up Yet Again

The monthly RHPI report said potential sellers are unlikely to lose all the equity they have gained.

Analysis and Data
Nov 28, 2022
Redfin: Pandemic Boomtowns Are Cooling

Home-price growth has slowed fastest in pandemic boomtowns like Austin, Phoenix and Boise, with inflation and high mortgage rates to blame.

Analysis and Data
Nov 28, 2022
Mortgage Application Payments Rose 3.7% In October

Mortgage payments are up by $629 in the first 10 months of the year, a 45.5% increase.

Analysis and Data
Nov 22, 2022
Investor Interest In Housing Market Cools

Investors lost market share for the second quarter in a row.

Analysis and Data
Nov 22, 2022
Share of Loans In Forbearance Ticks Up In October

MBA estimates that 350,000 homeowners are seeking assistance.

Analysis and Data
Nov 21, 2022
A Third Of Pending Home Sales Canceled In October

Redfin says deal cancelations, price cuts hit record highs.

Analysis and Data
Nov 21, 2022