MBA: Mortgage Applications Decrease in Latest Weekly Survey

… The Refinance Index decreased 5 percent from the previous
week and was 82 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent
compared with the previous week and was 18 percent lower than the same week one year ago.

“Mortgage application activity was lower last week, with overall applications declining over two percent to
their lowest level since 2000. Home purchase applications continued to be held down by rapidly drying up
demand, as high mortgage rates, challenging affordability, and a gloomier outlook of the economy kept
buyers on the sidelines,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry
Forecasting. “However, if home price growth slows more significantly and mortgage rates move lower, we
might see some purchase activity return later in the year. The 30-year fixed rate stayed more than two
percentage points higher than a year ago at 5.45 percent but was down over 50 basis points from the
June 2020 high of 5.98 percent, providing some relief for buyers in the market. The refinance index,
however, fell five percent to its lowest level since November 2000, driven by a six percent drop in
conventional refinance applications.”

Added Kan, “Refinance applications increased over three percent but remained more than 80 percent
lower than a year ago in this higher rate environment.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) decreased to 5.45 percent from 5.47 percent, with points decreasing to 0.57 from 0.80
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added