MBA Weekly Survey Sept. 7, 2022: Applications Fall 5th Straight Week
Mortgage applications fell for the fifth straight week, remaining at their lowest level in 22 years as interest rates rose again, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending Sept. 2.
The Market Composite Index fell by 0.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent from the previous week.
The unadjusted Refinance Index decreased by 1 percent from the previous week and was 83 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 30.7 percent of total applications from 30.3 percent the previous week.
The seasonally adjusted Purchase Index decreased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 3 percent from the previous week and was 23 percent lower than the same week one year ago.
The FHA share of total applications increased to 13.3 percent from 13.0 percent the week prior. The VA share of total applications decreased to 10.8 percent from 11.1 percent the week prior. The USDA share of total applications remained unchanged at 0.6 percent from the week prior.
“Mortgage rates moved higher over the course of last week as markets continued to re-assess the prospects for the economy and the path of monetary policy, with expectations for short-term rates to move and stay higher for longer,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “With the 30-year fixed rate rising to the highest level since mid-June, application volumes for both purchase and refinance loans dropped. Recent economic data will likely prevent any significant decline in mortgage rates in the near term, but the strong job market depicted in the August data should support housing demand. There is no sign of a rebound in purchase applications yet, but the robust job market and an increase in housing inventories should lead to an eventual increase in purchase activity.”
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.94 percent from 5.80 percent, with points increasing to 0.79 from 0.71 (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) increased to 5.46 percent from 5.32 percent, with points decreasing to 0.4 from 0.48 (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 5.61 percent from 5.57 percent, with points decreasing to 1.06 from 1.09 (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 5.23 percent from 5.10 percent, with points increasing to 0.86 from 0.82 (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 4.81 percent from 4.78 percent, with points increasing to 0.88 from 0.61 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity remained unchanged at 8.5 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.
