According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending May 13, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -11.0% compared with the previous week.
The Refinance Index decreased -10.0% from the previous week and was -76.0% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased -12.0% from one week earlier. The unadjusted Purchase Index decreased -12.0% compared with the previous week and was -15.0% 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:
“Mortgage applications decreased for the first time in three weeks, as mortgage rates—despite declining last week—remained over two percentage points higher than a year ago and close to the highest levels since 2009. For borrowers looking to refinance, the current level of rates continues to be a significant disincentive. Purchase applications fell 12 percent last week, as prospective homebuyers have been put off by higher rates and worsening affordability conditions. Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search.
These results were consistent with MBA’s May forecast released earlier this week, which now calls for fewer home sales and mortgage originations in 2022 compared to a year ago.”
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Mortgage Applications Decrease in Latest MBA Weekly Survey