by Risk calculated on 05/10/2022 07:00:00
From the MBA: Fall in mortgage applications in latest weekly MBA survey
Mortgage applications were down 14.2% from the previous week, according to Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey data for the week ending September 30, 2022 .
… The Refinance Index was down 18% from the previous week and was 86% lower than the same week a year ago. The seasonally adjusted shopping index fell 13% from the previous week. The unadjusted buy index was down 13% from the previous week and was 37% less than the same week a year ago.
“Mortgage rates continued to climb last week, causing a further decline in overall application activity, which fell at its slowest pace since 1997. The 30-year fixed rate hit 6.75% on the week latest, the highest rate since 2006,” said Joel Kan, MBA. Associate Vice President of Economic and Industrial Forecasting. “The current rate has more than doubled in the past year and increased by 130 basis points in the past seven weeks alone. The sharp rise in rates continued to halt refinancing activity and is also impacting purchase requests, which fell 37% from last year’s pace. Additionally, the spreads between the conforming rate and jumbo loans widened again and we saw ARM’s share increase further to almost 12% of applications.
Kan added, “The landfall of Hurricane Ian in Florida last week also had an impact, resulting in widespread closures and evacuations. Applications in Florida fell 31%versus 14% overall, on an unadjusted basis.
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The average contractual interest rate for 30-year fixed rate mortgages with conforming loan balances ($647,200 or less) increased from 6.52% to 6.75%, with points rising from 1, 15 to 0.95 (including origination fees) for 80% loan to loan to value (LTV) ratio.
added emphasis
Click on the graphic to enlarge the image.
The first graph shows the refinancing index since 1990.
With higher mortgage rates, the refinancing index has fallen sharply this year.
The refinancing index is at its lowest since 2000.
The second chart shows the MBA Mortgage Buy Index
According to the MBA, buying activity is down 37% year-over-year unadjusted.
Note: Red is a four-week average (blue is weekly).