Mortgage Applications Increased in Latest Weekly Review

from Estimated risk per 25.01.2023 07:00:00

From MBA: Increase in Mortgage Applications According to Latest Weekly MBA Survey

According to the Mortgage Bankers Association (MBA) Weekly Survey of Mortgage Applications for the week ended January 20, 2023, mortgage applications increased by 7.0 percent. This week’s results include an amendment for Martin Luther King Jr. compliance. Day.

… The refinancing index rose 15 percent from the previous week and was 77 percent lower than the same week a year ago. The seasonally adjusted buying index rose 3 percent from a week earlier.. The unadjusted buying index was down 1 percent from the previous week and was 39 percent lower than the same week a year ago.

“Mortgage rates have been falling for the third week in a row, which is good news for potential homebuyers ahead of the spring home buying season. Mortgage rates on most loan types fell last week, with the 30-year fixed rate hitting its lowest level since September 2022 at 6.2%,” said Joel Kahn, MBA vice president and deputy chief economist. “The total number of applications increased both due to the growth in buying activity and refinancing, but the number of applications for purchase remained almost 39 percent lower than a year ago. Home buying remains sluggish, but if rates continue to fall and home prices decline, we expect potential buyers to return to the market. Many have been waiting for accessibility issues to go away.”

Kan added: “Despite a 15 percent increase in refinancing, they still lagged 77 percent from last year’s pace as rates remained more than two percentage points higher, providing very little incentive to refinance for most borrowers who are pegged to more than low rates.”

The average contractual interest rate for 30-year fixed-rate mortgages with a qualifying loan balance ($726,200 or less) decreased to 6.20 percent from 6.23 percent, with the interest rate increasing from 0.67 to 0 .69 (including issuance fee) for an 80 percent loan. value-for-money (LTV) loans.
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Mortgage refinancing indexClick on the graph to enlarge the image.

The first chart shows the refinancing index since 1990.

With higher mortgage rates, the refinancing index fell sharply in 2022.

Three weeks ago, the refinancing index was at its lowest level since 2000 but recovered slightly as rates fell.

The second chart shows the MBA Mortgage Purchase Index.

Mortgage Buying Index

Buying activity is down 39% year-over-year, unadjusted, according to the MBA.

Note. Red is a four-week average (blue is a week).