MBA Weekly Survey Nov. 9, 2022: Rates Rise; Refis Fall to 22-Year Low

Mortgage applications fell for the seventh straight week, with rising mortgage rates pushing refinance applications to their lowest level since 2000, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending Nov. 4.

Purchase applications rose slightly—the first increase in six weeks.

The Market Composite Index fell by 0.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index fell by 2 percent from the previous week. 

The unadjusted Refinance Index fell by 4 percent from the previous week and was 87 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 28.1 percent of total applications from 28.6 percent the previous week.

The seasonally adjusted Purchase Index increased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 1 percent from the previous week and was 41 percent lower than the same week one year ago.

The FHA share of total applications decreased to 13.3 percent from 13.5 percent the week prior. The VA share of total applications remained unchanged at 10.3 percent from the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.

“Mortgage rates edged higher last week following news that the Federal Reserve will continue raising short-term rates to combat high inflation,” said Joel Kan, MBA Vice President and Deputy Chief Economist. “The 30-year fixed rate remained above 7 percent for the third consecutive week, with increases for most loan types. Purchase applications increased for the first time after six weeks of declines but remained close to 2015 lows, as homebuyers remained sidelined by higher rates and ongoing economic uncertainty. Refinances continued to fall, with the index hitting its lowest level since August 2000.”

MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 7.14 percent from 7.06 percent, with points increasing to 0.77 from 0.73 (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) decreased to 6.50 percent from 6.55 percent, with points increasing to 0.78 from 0.70 (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 increased to 6.86 percent from 6.70 percent, with points increasing to 1.37 from 1.18 (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 6.40 percent from 6.37 percent, with points increasing to 1.13 from 1.05 (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 increased to 5.87 percent from 5.79 percent, with points increasing to 0.92 from 0.90 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity increased to 12.0 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.