Mortgage applications down in latest weekly review

on Estimated risk per 07/13/2022 07:00:00

From MBA: Mortgage applications are down in latest weekly MBA survey

– According to the Mortgage Bankers Association (MBA) Weekly Survey of Mortgage Applications for the week ended July 8, 2022, mortgage applications were down 1.7 percent from the previous week. This week’s results include an adjustment for Independence Day celebrations.

… The refinancing index rose 2 percent from the previous week and was 80 percent lower than the same week a year ago. The seasonally adjusted buying index was down 4% from a week earlier.. The unadjusted buying index was down 14 percent from the previous week and was 18 percent lower than the same week a year ago.

“Mortgage rates are largely unchanged, but applications are declining for the second week in a row. Applications to purchase both conventional and government loans remain weaker due to a combination of much higher mortgage rates and a worsening economic outlook,” said Joel Kahn, an MBA lawyer. VP of Economic and Industry Forecasting: “After hitting a record $460,000 in March 2022, average purchase credit stood at $415,000 last week, lowered by a potential slowdown in home prices and a weaker buying activity at the top of the market”.

Kang added, “Refinancing applications increased slightly last week, driven by an increase in conventional refinancing and FHA refinancing. The overall refinancing index remained 5 percent below the average reported in June. With the 30-year fixed rate 265 basis points higher than a year ago, refinancing applications are expected to remain subdued.”

Average interest rate under the contract 30-year fixed-rate mortgages with matching loan balances ($647,200 or less) remained at 5.74 percent.while the scores are reduced to 0.59 from 0.65 (including issuance fees) for loans with an 80 percent loan to value (LTV) ratio.
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Mortgage refinancing indexClick on the graph to enlarge the image.

The first chart shows the refinancing index since 1990.

With higher mortgage rates, the refinancing index has fallen sharply over the past few months.

The refinancing index is just above its lowest level since 2000.

The second chart shows the MBA Mortgage Purchase Index.


Mortgage Buying Index

Buying activity is down 18% year-over-year, unadjusted, according to the MBA.

Note. Red is a four-week average (blue is a week).