According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending April 15, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -5.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decrease -4.0% compared with the previous week.
The Refinance Index decreased -8.0% from the previous week and was -68.0% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased -3.0% from one week earlier. The unadjusted Purchase Index decreased 2.0% compared with the previous week and was -14.0% 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:
“Ongoing concerns about rapid inflation and tighter US monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade. Rates increased across the board for all loan types, with the 30-year fixed rate hitting 5.2%, the highest level since 2010. The 30-year rate has increased 70 basis points over the past month and is 2 full percentage points higher than a year ago.”
“The recent surge in mortgage rates has shut most borrowers out of rate/term refinances, causing the refinance index to fall for the sixth consecutive week. In a housing market facing affordability challenges and low inventory, higher rates are causing a pullback or delay in home purchase demand as well. Home purchase activity has been volatile in recent weeks and has yet to see the typical pick up for this time of the year.”
“The ARM share of applications reached 8.5% last week, its highest level since 2019. As ARM loans typically have lower rates than fixed rate mortgages, and as this spread has widened, ARM loans have become more attractive to borrowers already facing home purchase loan amounts close to record highs.”
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