Mortgage Applications Decline in Week Ending February 16th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, February 16th, the Market Composite Index—a measure of mortgage loan application volume—decreased 10.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 8.0% compared with the previous week.

The Refinance Index decreased 11.0% from one week ago but was 0.1% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 10.0% compared with one week ago. The unadjusted Purchase Index decreased 6.0% compared with the previous week and was 13.0% lower than the same week one year ago.

Commenting on the results of this week’s survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“Mortgage rates moved back above 7% last week following news that inflation picked up in January, dimming hopes of a near term rate cut. Mortgage applications dropped as a result with a larger decline in refinance applications. Potential homebuyers are quite sensitive to these rate changes, as affordability is strained with both higher rates and higher home values in this supply-constrained market.”