Mortgage applications down in latest weekly review

on Estimated risk per 20.07.2022 07:00:00

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

According to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending July 15, 2022, mortgage applications were down 6.3 percent from a week earlier.

… The refinancing index was down 4 percent from the previous week and was 80 percent lower than the same week a year ago. The seasonally adjusted buying index was down 7 percent from a week earlier.. The unadjusted buying index rose 16 percent from the previous week and was 19 percent lower than the same week a year ago.

Mortgage applications are down for the third week in a row, hitting their lowest level since 2000. Similarly, when mortgage rates are more than two percentage points higher than a year ago, demand for refinancing continues to plummet, with the MBA Refinancing Index also falling to a 22-year low,” said Joel Kahn, Deputy Vice President President of the MBA in Economic and Industry Forecasting. “Buying activity for both conventional and government loans has eased as a deteriorating economic outlook, high inflation and persistent affordability issues weigh on buying demand. The decline in recent bids is due to slower housing construction due to reduced buying traffic, continued shortages of building materials and higher costs.”

The average contractual interest rate for 30-year fixed-rate mortgages with a qualifying loan balance ($647,200 or less) increased to 5.82 percent from 5.74 percent, with the interest rate increasing to 0.65 from 0 .59 (including issuance fee) for 80 percent loan. – the value ratio (LTV) of loans.
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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 at its lowest level since 2000.

The second chart shows the MBA Mortgage Purchase Index.


Mortgage Buying Index

Buying activity is down 19% year-over-year, unadjusted, according to the MBA.

The buying index is now just 14% above the pandemic low.

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