MBA Weekly Survey Aug. 10, 2022: Applications Up 2nd Straight Week
Mortgage applications rose for the second straight week despite continued interest rate volatility, the the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending August 5.
The Market Composite Index rose by 0.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 0.3 percent from the previous week.
The unadjusted Refinance Index increased by 4 percent from the previous week but was 82 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 32.0 percent of total applications from 30.8 percent the previous week.
The seasonally adjusted Purchase Index decreased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 2 percent from the previous week and was 19 percent lower than the same week one year ago.
The FHA share of total applications increased to 12.1 percent from 11.9 percent the week prior. The VA share of total applications increased to 10.9 percent from 10.8 percent the week prior. The USDA share of total applications remained unchanged at 0.6 percent the week prior.
“Mortgage rates remained volatile last week – after drops in the previous two weeks, mortgage rates ended up rising four basis points,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Mortgage applications were relatively flat, with a decline in purchase activity offset by an increase in refinance applications.
Kan noted the purchase market continues to experience a slowdown, despite the strong job market. “Activity has now fallen in five of the last six weeks, as buyers remain on the sidelines due to still-challenging affordability conditions and doubts about the strength of the economy,” he said. “Refinance applications increased over three percent but remained more than 80 percent lower than a year ago in this higher rate environment.”
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.47 percent from 5.43 percent, with points increasing to 0.80 from 0.65 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 5.09 percent from 5.06 percent, with points increasing to 0.59 from 0.36 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 5.35 percent from 5.39 percent, with points decreasing to 1.02 from 1.03 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages remained at 4.74 percent, with points decreasing to 0.62 from 0.65 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages increased to 4.60 percent from 4.55 percent, with points decreasing to 0.63 from 0.69 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity decreased to 7.4 percent of total applications.
The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
