Mortgage Applications
Jumped in Latest MBA Weekly Survey
05/05/2022
According to the latest data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending April 29, 2022, mortgage applications increased 2.5% from a week ago after an eight-week downward trend.
While the Market Composite Index, a measure of mortgage loan application volume, shows a seasonally adjusted increase, the number of unadjusted applications increased compared with the previous week.
The share of refinancing in mortgage activity increased the total number of applications from the previous week. The total number of applications for the share of adjustable interest rate mortgage (ARM) activities increased.
However, the total applications of FHA and the VA share of total applications has also decreased.
The average contract rate for a 30-year fixed rate mortgage with conforming loan balances rose, and the point of a loan-to-value ratio (LTV) loan decreases. Effective interest rates have increased nowadays.
Average contract rates for 30-year fixed-rate mortgages with jumbo loan balances increased and points for LTV loans decreased. Effective rates have also increased lately.
As MBA’s Associate Vice President for Economic and Industry Forecasting Joel Kan once said, most mortgage rates in the MBA survey continued to rise, with the 30-year fixed rate reaching its highest level since March 2020 at 3.78%. Despite the increase in rates, refinance applications still increased due to a surge in conventional applications. The number of applications may have seen some volatility recently as the holiday-affected weeks and borrowers trying to get refinanced before rates move higher.
Purchase applications also increased, but are still lower than a year ago. Average purchase loan size hit a new survey high once again. Stubbornly low inventory levels and rapid home price growth continued to drive average loan size higher.
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Post time: May-06-2022