Mortgage Applications Decline for Second Consecutive Week in the Week Ending February 11, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending February 11, 2022, the Market Composite Index—a measure of mortgage loan application volume—decreased -5.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -3.0% compared with the previous week.

The Refinance Index decreased -9.0% from the previous week and was -54.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index declined -1.0% from one week earlier. The unadjusted Purchase Index increased 5.0% compared with the previous week but was -7.0% lower than the same week one year ago.

In a statement prepared for the release of this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates increased across the board last week following the recent rise in Treasury yields, which have moved higher due to unrelenting inflationary pressures and increased market expectations of more aggressive policy moves by the Federal Reserve. The 30-year fixed rate saw the largest single-week increase since March 2020 and was above the 4 percent mark for the first time since 2019. Consistent with this period of higher mortgage rates, refinance applications fell 9 percent last week and stood at around half of last year’s pace. The refinance share of applications was also at its lowest level since July 2019.”

“Purchase applications saw a modest decline over the week, with government purchase applications accounting for most of the decrease,” Kan added. “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000.”