Mortgage Applications Increase for Second Consecutive Week During the Week Ending January 14, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending January 14, 2022, the Market Composite Index — a measure of mortgage loan application volume — increased 2.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3% compared with the previous week.

The Refinance Index decreased -3% from the previous week and was -49% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 8% from one week earlier. The unadjusted Purchase Index increased 14% compared with the previous week but was -13% 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 rates hit their highest levels since March 2020, leading to the slowest pace of refinance activity in over two years. The 30-year fixed rate reached 3.64 percent and has increased more than 30 basis points over the past two weeks. FHA and VA refinance declines drove most of the refinance slowdown. Despite the increase in rates, purchase applications jumped almost 8 percent, with conventional purchase applications accounting for much of the stronger activity. The average loan size for a purchase application set a record at $418,500. The continued rise in purchase loan application sizes is driven by high home-price appreciation and the lack of housing inventory on the market — especially for entry-level homes. The slower growth in government purchase activity is also contributing to the larger loan balances and suggests that prospective first-time buyers are struggling to find homes to buy in their price range.”


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Original Source:
Mortgage Applications Increase in Latest MBA Weekly Survey