Mortgage Applications Decline in Week Ending March 11, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending March 11, 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 decrease -1.0% compared with the previous week.

The Refinance Index decreased -3.0% from the previous week and was -49.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 1.0% from one week earlier. The unadjusted Purchase Index increased 2.0% compared with the previous week but was -8.0% lower than the same week one year ago.

In remarks prepared for the release of this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates continue to be volatile due to the significant uncertainty regarding Federal Reserve policy and the situation in Ukraine. Investors are weighing the impacts of rapidly increasing inflation in the U.S. and many other parts of the world against the potential for a slowdown in economic growth due to a renewed bout of supply-chain constraints. After declining two weeks ago, the 30-year fixed-rate mortgage increased last week to 4.27 percent—the highest since May 2019. Rates are now roughly a full percentage point higher than a year ago and continue to hamper refinance activity. Refinances declined for both conventional and government loans.”

“Purchase applications slightly increased, with both conventional and VA loan applications seeing gains,” Kan added. “The average purchase application loan size remained elevated at $453,200—the second-highest amount in MBA’s survey.”