Mortgage Applications Drop in the Week Ending April 1, 2022, Marking the Fourth Consecutive Decline

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending April 1, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -6.3 % on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decrease -6.0% compared with the previous week.

The Refinance Index decreased -10.0% from the previous week and was -62.0% 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 -3.0% compared with the previous week but was -9.0% lower than the same week one year ago.

In a statement prepared for this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said:

“Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months. The 30-year fixed mortgage rate increased for the fourth consecutive week to 4.90 percent and is now more than 1.5 percentage points higher than a year ago. As higher rates reduce the incentive to refinance, application volume dropped to its lowest level since the spring of 2019. The refinance share of all applications dipped to 38.8 percent, down from 51 percent a year ago.

The hot job market and rapid wage growth continue to support housing demand, despite the surge in rates and swift home-price appreciation. However, insufficient for-sale inventory is restraining purchase activity. Additionally, the elevated average purchase loan size, and steeper 8 percent drop in FHA purchase applications, are both indicative of first-time buyers being disproportionately impacted by supply and affordability challenges.”


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Original Source:
Mortgage Applications Decrease in Latest MBA Weekly Survey