MBA Weekly Survey Nov. 16, 2022: Rates Fall; Applications Up 1st Time in 8 Weeks

Mortgage applications rose for the first time in eight weeks as mortgage rates fell back below 7 percent, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending Nov. 11.

The week’s results include an adjustment for the observance of Veterans Day.

The Market Composite Index increased by 2.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 10 percent from the previous week. 

The unadjusted Refinance Index decreased by 2 percent from the previous week and was 88 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 27.6 percent of total applications from 28.1 percent the previous week.

The seasonally adjusted Purchase Index increased by 4 percent from one week earlier. The unadjusted Purchase Index decreased by 10 percent from the previous week and was 46 percent lower than the same week one year ago.

The FHA share of total applications increased to 13.5 percent from 13.3 percent the week prior. The VA share of total applications increased to 10.6 percent from 10.3 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.5 percent the week prior.

“Mortgage rates decreased last week as signs of slower inflation pushed Treasury yields lower,” said Joel Kan, MBA Vice President and Deputy Chief Economist. “The 30-year fixed rate saw the largest single-week decline since July, dropping to 6.9 percent. Application activity, adjusted to account for the Veterans Day holiday, increased in response to the drop in rates – driven by a 4 percent rise in home purchase applications. Purchase applications increased for all loan types, and the average purchase loan dipped to its smallest amount since January 2021. Refinance activity remained depressed, down 88 percent over the year. There is very little refinance incentive with rates so much higher than last year.”

MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 6.90 percent from 7.14 percent, with points decreasing to 0.56 from 0.77 (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) increased to 6.51 percent from 6.50 percent, with points decreasing to 0.64 from 0.78 (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 6.93 percent from 6.86 percent, with points decreasing to 0.99 from 1.37 (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 6.27 percent from 6.40 percent, with points decreasing to 0.73 from 1.13 (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 decreased to 5.73 percent from 5.87 percent, with points decreasing to 0.65 from 0.92 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity decreased to 10.6 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.