According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending May 6, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 2.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3.0% compared with the previous week.
The Refinance Index increased 2.0% from the previous week but was -72.0% lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 5.0% from one week earlier. The unadjusted Purchase Index increased 5.0% compared with the previous week but was -8.0% 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:
“The increase in mortgage applications last week was driven by a strong gain in application activity for conventional and government purchase loans, even as mortgage rates rose to their highest level—5.53 percent—since 2009. Despite a slow start to this year’s spring home buying season, prospective buyers are showing some resiliency to higher rates. Purchase activity has now increased for two straight weeks. More borrowers continue to utilize ARMs to combat higher rates. The share of ARMs increased to 11 percent of overall loans and to 19 percent by dollar volume.
The rapid rise in mortgages rates continues to hit the refinance market, with activity 70 percent below a year ago. Most homeowners refinanced to lower rates in the past two years.”
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Mortgage Applications Increase in Latest MBA Weekly Survey