Mortgage Applications Moved Higher in the Week Ending March 4, 2022

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending March 4, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 8.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increase 10.0% compared with the previous week.

The Refinance Index increased 9.0% from the previous week but was -50.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 9.0% from one week earlier. The unadjusted Purchase Index increased 11.0% compared with the previous week but was -7.0% 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 rates dropped for the first time in 12 weeks, as the war in Ukraine spurred an investor flight to quality, which pushed U.S. Treasury yields lower. A 6-basis-point decline in the 30-year fixed-rate mortgage led to a slight rebound in total refinance activity, with a larger gain in government refinances. Looking ahead, the potential for higher inflation amidst disruptions in oil and other commodity flows will likely lead to a period of volatility in rates as these effects work against each other.”

“Purchase activity also increased, as prospective buyers acted on lower rates and the early start of the spring buying season. The average loan size remained close to record highs, with higher-balance loan applications continuing to dominate growth,” Kan added.