MBA Weekly Survey July 13, 2022: Applications, Rates See Little Change
Mortgage applications fell for the second straight week, albeit only slightly, and key interest rates were unchanged, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending July 8.
This week’s results include an adjustment for the observance of Independence Day.
The Market Composite Index fell by 1.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 13 percent from the previous week.
The unadjusted Refinance Index increased by 2 percent from the previous week but was 80 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 30.8 percent of total applications from 29.6 percent the previous week.
The seasonally adjusted Purchase Index decreased by 4 percent from one week earlier. The unadjusted Purchase Index decreased by 14 percent from the previous week and was 18 percent lower than the same week one year ago.
The FHA share of total applications decreased to 11.7 percent from 12.0 percent the week prior. The VA share of total applications increased to 11.2 percent from 11.1 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.
“Mortgage rates were mostly unchanged, but applications declined for the second straight week,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Purchase applications for both conventional and government loans continue to be weaker due to the combination of much higher mortgage rates and the worsening economic outlook. After reaching a record $460,000 in March 2022, the average purchase loan size was $415,000 last week, pulled lower by the potential moderation of home-price growth and weaker purchase activity at the upper end of the market.”
Kan noted refinance applications increased slightly last week, driven by an uptick in conventional and FHA refinances. “The overall refinance index remained 5 percent below the average level reported in June,” he said. “With the 30-year fixed rate 265 basis points higher than a year ago, refinance applications are expected to remain depressed.”
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) unchanged at 5.74 percent, with points decreasing to 0.59 from 0.65 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) decreased to 5.25 percent from 5.28 percent, with points decreasing to 0.38 from 0.44 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 5.49 percent from 5.60 percent, with points increasing to 1.08 from 0.89 (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 decreased to 4.93 percent from 4.96 percent, with points increasing to 0.72 from 0.68 (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 4.71 percent from 4.62 percent, with points increasing to 0.77 from 0.72 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity increased to 9.6 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.
