RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Mortgage Applications Index Falls to Lowest Level in 22 Years

Home Agents
By RISMedia Staff
June 8, 2022
Reading Time: 2 mins read
Mortgage Applications Index Falls to Lowest Level in 22 Years

Mortgage applications decreased 6.5% from one week earlier, according to the latest data from the Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending June 3, 2022, released Wednesday. This week’s results include an adjustment for the Memorial Day holiday, MBA reported.

Key findings:

  • The Market Composite Index, a measure of mortgage loan application volume, decreased 6.5% on a seasonally adjusted basis from one week earlier.
  • On an unadjusted basis, the Index decreased 17% compared with the previous week.
  • The Refinance Index decreased 6% from the previous week and was 75% lower than the same week one year ago.
  • The seasonally adjusted Purchase Index decreased 7% from one week earlier. The unadjusted Purchase Index decreased 18% compared with the previous week and was 21% lower than the same week one year ago.
  • The refinance share of mortgage activity increased to 32.2% of total applications from 31.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.2% of total applications.
  • The FHA share of total applications increased to 11.3% from 10.8% the week prior. The VA share of total applications increased to 11.4% from 10.2% the week prior. The USDA share of total applications remained unchanged at 0.5% the week prior.
  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.40% from 5.33%, with points increasing to 0.60 from 0.51 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 4.99% from 4.93%, with points increasing to 0.44 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 5.30% from 5.20%, with points increasing to 0.79 from 0.69 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages increased to 4.62% from 4.59%, with points increasing to 0.65 from 0.63 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs increased to 4.51% from 4.46%, with points remaining at 0.68 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The takeaway:

“Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “The 30-year fixed rate increased to 5.4% after three consecutive declines. While rates were still lower than they were four weeks ago, they remained high enough to still suppress refinance activity. Only government refinances saw a slight increase last week. The purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past two months. These worsening affordability challenges have been particularly hard on prospective first-time buyers.”

Tags: Housing MarketMarket Composite IndexMortgage ApplicationsMortgage Bankers AssociationMortgage Rates
ShareTweetShare

RISMedia Staff

Related Posts

Break a Leg: How Acting Techniques Can Enhance Your Pitch
Agents

Break a Leg: How Acting Techniques Can Enhance Your Pitch

June 26, 2022
Thoughts on Leadership: Beyond the Good or Great
Brokers

Thoughts on Leadership: Beyond the Good or Great

June 26, 2022
One-of-a-Kind Houston Penthouse Sells for $6.9 Million
Best Practices

One-of-a-Kind Houston Penthouse Sells for $6.9 Million

June 25, 2022
Headliners Week of 6/19 – 6/25
Headliners

Headliners Week of 6/19 – 6/25

June 24, 2022
Harvard ‘State of Housing’ Charts Path Forward
Agents

Harvard ‘State of Housing’ Charts Path Forward

June 24, 2022
New Home Sales Unexpectedly Rise Sharply in May
Agents

New Home Sales Unexpectedly Rise Sharply in May

June 24, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

4 Ways to Get Ready for the Summer Market

From leveraging the sunshine in your networking to dropping FaceTime for actual face time with clients, here are a few... Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Break a Leg: How Acting Techniques Can Enhance Your Pitch
  • Thoughts on Leadership: Beyond the Good or Great
  • One-of-a-Kind Houston Penthouse Sells for $6.9 Million

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

RISMEDIA PREMIER CONTENT

INSIGHTS THAT ELEVATE YOUR VALUE

logo-rismedia-white
x