According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending January 7, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 46% compared with the previous week.
The Refinance Index decreased -0.1% from the previous week and was -50% lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 51% compared with the previous week but was -17% lower than the same week one year ago.
In remarks prepared for the release of this week’s WMAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates increased significantly across all loan types of last week as the Federal Reserve’s signaling of tighter policy ahead pushed U.S. Treasury yields higher. The 30-year fixed rate hit 3.52 percent, its highest level since March 2020. Rates at these levels are quickly closing the door on refinance opportunities for many borrowers. Although refinance activity changed little over the week, applications remained at their lowest level in over a month, and conventional refinance applications were at their lowest level since January 2020. The housing market started 2022 on a strong note. Both conventional and government purchase applications showed increases, with FHA purchase applications increasing almost 9 percent, and VA applications increasing more than 5 percent. MBA expects solid growth in purchase activity this year, as demographic drivers and the strong economy support housing demand. However, the strength in growth will be dependent on housing inventory growing more rapidly to meet demand.”
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