Rapid rise in mortgage rates slows purchase originations and refinances.
Tagged: Mortgage Bankers Association (MBA)
Some segments showed improvement in March 2022
Minor increase in purchase applications seen as positive development.
MBA’s new monthly index tracks what homebuyers can afford based on application data.
MBA economist: With mortgage rates now at 4.5%, “it is no surprise that refinance volume has dropped by more than 50% compared to this time last year.”
The MBA study found that 76% of the firms posted a pre-tax net financial profit in the fourth quarter, down from 92% in the third quarter.
MBA’s monthly Loan Monitoring Survey found the share of loans in forbearance fell to 1.18%, the 21st consecutive monthly decline.
Despite a small gain in purchase applications as mortgage rates fell, overall applications decline.
Applications for both home purchases and refinances rose last week as interest rates fell.
Overall lending activity down 11%.