Mortgage Applications Drop to Lowest Level Since December 2019 in the Week Ending February 18, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending February 18, 2022, the Market Composite Index (a measure of mortgage loan application volume) decreased -13.1% 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 -16.0% from the previous week, and it was -56.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index declined -10.0% from one week earlier. The unadjusted Purchase Index increased 6.0% compared with the previous week, and it was -6.0% lower than the same week one year ago.

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

“Mortgage applications dropped to their lowest level since December 2019 last week, as mortgage rates continued to inch higher. The 30-year fixed rate was 4.06 percent, almost a full percentage point higher than a year ago. Higher mortgage rates have quickly shut off refinances, with activity down in six of the first seven weeks of 2022. Conventional refinances in particular saw a 17 percent decrease last week. Purchase applications, already constrained by elevated sales prices and tight inventory, have also been impacted by these higher rates and declined for the third straight week. While the average loan size did not increase this week, it remained close to the survey’s record high.”