MBA Weekly Survey Nov. 2, 2022: Applications Fall 6th Straight Week
Despite a slight drop in mortgage rates, mortgage applications fell for the sixth straight week, although refinance applications ticked up, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending October 28.
This week’s results include revised data to reflect an update to last week’s survey results.
The Market Composite Index fell by 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 1 percent from the previous week.
The unadjusted Refinance Index increased by 0.2 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 28.6 percent of total applications from 28.2 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 41 percent lower than the same week one year ago.
The FHA share of total applications decreased to 13.5 percent from 13.9 percent the week prior. The VA share of total applications decreased to 10.3 percent from 10.7 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
“The 30-year fixed rate decreased for the first time in over two months to 7.06 percent, but remained close to its highest since 2002,” said Joel Kan, MBA Vice President and Deputy Chief Economist. “Apart from the ARM loan rate, rates for all other loan types were more than three percentage points higher than they were a year ago. These elevated rates continue to put pressure on both purchase and refinance activity and have added to the ongoing affordability challenges impacting the broader housing market, as seen in the deteriorating trends in housing starts and home sales.”
Kan noted with most homeowners locked into significantly lower rates, refinance applications continued to run more than 80 percent below last year’s pace. “The refinance share of applications was 28.6 percent – the fifth straight week below 30 percent,” he said.
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 7.06 percent from 7.16 percent, with points decreasing to 0.73 from 0.88 (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 6.55 percent from 6.53 percent, with points increasing to 0.7 from 0.68 (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 6.70 percent from 6.79 percent, with points decreasing to 1.18 from 1.59 (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 6.37 percent from 6.39 percent, with points decreasing to 1.05 from 1.52 (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 5.79 percent from 5.86 percent, with points increasing to 0.9 from 0.88 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity decreased to 11.8 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.
