MBA: Mortgage Applications Decreased Over Last Two Weeks

… The holiday adjusted Refinance Index decreased 16.3
percent from the two weeks ago and was 87 percent lower than the same week one year ago. The
seasonally adjusted Purchase Index decreased 12.2 percent from two weeks earlier. The unadjusted
Purchase Index decreased 38.5 percent compared with the two weeks ago and was 42 percent lower
than the same week one year ago.

“The end of the year is typically a slower time for the housing market, and with mortgage rates still well
above 6 percent and the threat of a recession looming, mortgage applications continued to decline over
the past two weeks to the lowest level since 1996,” said Joel Kan, MBA’s Vice President and Deputy
Chief Economist. “Purchase applications have been impacted by slowing home sales in both the new and
existing segments of the market. Even as home-price growth slows in many parts of the country, elevated
mortgage rates continue to put a strain on affordability and are keeping prospective homebuyers out of
the market.”

Added Kan, “Refinance applications remain less than a third of the market and were 87 percent lower
than a year ago as rates remained close to double what they were in 2021. Mortgage rates are lower than
October 2022 highs, but would have to decline substantially to generate additional refinance activity.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) increased to 6.58 percent from 6.42 percent, with points increasing to 0.73 from 0.65
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added