According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending April 29, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 2.5% 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 0.2% from the previous week but was -71.0% lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 4.0% from one week earlier. The unadjusted Purchase Index increased 5.0% compared with the previous week but was -11.0% 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:
“Treasury yields eased slightly last week but remained close to 2018 highs, as financial markets await the news from the Federal Reserve on its latest plans for rate hikes and reducing its balance sheet holdings. The 30-year fixed rate was 5.36 percent, up over two percentage points from a year ago. The 127-basis-point jump in rates over the past two months has triggered a 49 percent drop-in refinance activity.
Purchase applications increased for conventional, FHA, and VA loans and were up 4 percent overall. This is potentially a good sign for the spring home buying season, which has seen a slow start thus far. The purchase market remains challenged by low levels of housing inventory and rapid home-price gains, as well as the affordability hit from higher mortgage rates that are forcing prospective buyers to factor in higher monthly payments. The ARM share remained unchanged at around 9 percent, which is well below the 30 percent mark observed in the mid-2000s.”
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Mortgage Applications Increase in Latest MBA Weekly Survey