Mortgage Applications Drop for the Sixth Consecutive Week in the Week Ending June 3, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending June 3, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -6.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -17.0% compared with the previous week. This week’s results include an adjustment for the Memorial Day holiday.

The Refinance Index decreased -6.0% from the previous week and was -75.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index declined -7.0% from the previous week. The unadjusted Purchase Index decreased -18.0% compared with the previous week and was -21.0% 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:

“Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years. The 30-year fixed rate increased to 5.4 percent after three consecutive declines. While rates were still lower than they were four weeks ago, they remain high enough to still suppress refinance activity. Only government refinances saw a slight increase last week.

The purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past months. These worsening affordability challenges have been particularly hard on prospective first-time buyers.”