MBA: Mortgage Applications Decrease in Latest Weekly Survey

… The Refinance Index decreased 9 percent from the previous
week and was 54 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 1 percent from one week earlier. The unadjusted Purchase Index increased 5 percent
compared with the previous week and was 7 percent lower than the same week one year ago.

“Mortgage rates increased across the board last week following the recent rise in Treasury yields, which
have moved higher due to unrelenting inflationary pressures and increased market expectations of more
aggressive policy moves by the Federal Reserve,” said Joel Kan, MBA’s Associate Vice President of
Economic and Industry Forecasting. “The 30-year fixed rate saw the largest single-week increase since
March 2020 and was above the 4 percent mark for the first time since 2019. Consistent with this period of
higher mortgage rates, refinance applications fell 9 percent last week and stood at around half of last
year’s pace. The refinance share of applications was also at its lowest level since July 2019.”

Added Kan, “Purchase applications saw a modest decline over the week, with government purchase
applications accounting for most of the decrease. Prospective buyers still face elevated sales prices in
addition to higher mortgage rates. The heavier mix of conventional applications again contributed to
another record average loan size at $453,000.
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) increased to 4.05 percent from 3.83 percent, with points increasing to 0.45 from 0.40
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added

According to the MBA, purchase activity is down 7% year-over-year unadjusted.