Mortgage Applications Decline for Fourth Consecutive Week in the Week Ending May 20, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending May 20, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -1.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -2.0% compared with the previous week.

The Refinance Index decreased -4.0% from the previous week and was -75.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index was unchanged from the previous week. The unadjusted Purchase Index decreased -1.0% compared with the previous week and was -16.0% lower than the same week one year ago.

In remarks prepared for this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said:

“The 30-year fixed rate declined for the second straight week to 5.46 percent but remains well above what borrowers were used to over the past two years. Most refinance borrowers continue to remain on the sidelines as a result, and refinance applications have fallen in nine of the past 10 weeks. Compared to January 2022, refinance activity is down 66 percent.

Higher mortgage rates are also impacting purchase market conditions, as the purchase index remained close to lows last seen in the spring of 2020 when a significant portion of activity was put on hold due to the onset of the pandemic. Currently, higher rates, low inventory, and high prices are keeping prospective buyers out of the market.”