MBA Weekly Survey Dec. 14, 2022: Applications Rebound After 2 Down Weeks
Mortgage applications rose for the first time in three weeks, despite an uptick in mortgage interest rates, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending December 9.
The Market Composite Index increased by 3.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 0.4 percent from the previous week.
The unadjusted Refinance Index increased by 3 percent from the previous week but was 85 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 29.4 percent of total applications from 28.7 percent the previous week.
The seasonally adjusted Purchase Index increased by 4 percent from one week earlier. The unadjusted Purchase Index decreased by 1 percent from the previous week and was 38 percent lower than the same week one year ago.
The FHA share of total applications decreased to 13.1 percent from 13.7 percent the week prior. The VA share of total applications increased to 11.5 percent from 11.4 percent the week prior. The USDA share of total applications remained unchanged at 0.6 percent from the week prior.
“Mortgage rates increased slightly after a month of declines, as financial markets reacted to mixed signals regarding inflation and the Federal Reserve’s next policy moves,” said Joel Kan, MBA Vice President and Deputy Chief Economist. “The 30-year fixed rate inched to 6.42 percent, which is still close to the lowest rate in a month. Overall applications increased, driven by increases in purchase and refinance activity. However, with rates more than three percentage points higher than a year ago, both purchase and refinance applications are still well behind last year’s pace.”
Kan noted, however, that ongoing moderation in home-price growth, along with further declines in mortgage rates, “may encourage more buyers to return to the market in the coming months.”
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.42 percent from 6.41 percent, with points increasing to 0.64 from 0.63 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 6.14 percent from 6.08 percent, with points decreasing to 0.42 from 0.50 (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 increased to 6.40 percent from 6.39 percent, with points increasing to 1.03 from 0.93 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.92 percent from 5.84 percent, with points decreasing to 0.54 from 0.55 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 5.58 percent from 5.59 percent, with points decreasing to 0.80 from 0.91 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity increased to 7.7 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.
Please Note: MBA offices will be closed Monday, December 26, and will reopen on Tuesday, January 3, 2023. Due to the holiday, results for weeks ending December 23 and December 30 will be released on January 4, 2023.
