MBA Weekly Survey May 24, 2023: Mortgage Applications Decrease
Mortgage applications fell again last week, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey for the week ending May 19.
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5
percent compared with the previous week. The Refinance Index decreased 5 percent from the previous
week and was 44 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent
compared with the previous week and was 30 percent lower than the same week one year ago.
“Mortgage applications declined almost five percent last week as borrowers remained sensitive to higher
rates,” said Joel Kan, MBA Vice President and Deputy Chief Economist. He said the 30-year fixed rate increased to 6.69 percent, the highest level since March. “Since rates have been so volatile and for-sale
inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity
remains limited, with the refinance index falling to its lowest level in two months and more than 40 percent
below last year’s pace.”
Kan noted investors remained attuned to the uncertainty around the U.S. debt ceiling and
communication from several Federal Reserve officials last week, which sent Treasury yields higher, along
with mortgage rates. Economic data released over the past week have also pointed to a still-resilient
economy. The housing market received positive data on new residential construction–which is seen as a
key solution to the lack of housing inventory.”
The refinance share of mortgage activity remained unchanged at 27.4 percent of total applications from
the previous week. The adjustable-rate mortgage share of activity increased to 6.7 percent of total
applications.
The FHA share of total applications increased to 12.5 percent from 12.0 percent the week prior. The VA
share of total applications increased to 12.5 percent from 12.2 percent the week prior. The USDA share
of total applications increased to 0.5 percent from 0.4 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($726,200 or less) increased to 6.69 percent from 6.57 percent, with points increasing to 0.66 from 0.61
(including the 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 $726,200) increased to 6.57 percent from 6.46 percent, with points increasing to 0.57 from 0.38
(including the 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 the FHA increased to 6.56
percent from 6.39 percent, with points increasing to 1.24 from 0.97 (including the 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 6.15 percent from 5.96
percent, with points increasing to 0.72 from 0.68 (including the origination fee) for 80 percent LTV loans.
The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.73 percent from 5.71 percent, with points
increasing to 1.19 from 1.10 (including the origination fee) for 80 percent LTV loans. The effective rate
increased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit
www.mba.org/WeeklyApps.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been
conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
Base period and value for all indexes is March 16, 1990=100.
