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The Mortgage Bankers Association (MBA) reported that mortgage applications rose 2.2 percent in the week ending Nov. 18, with results adjusted for the Veterans Day holiday.
The MBA Composite Market Index measures the number of mortgage applications nationwide.
For the week ending November 18, 2022, it reported a 2.2% increase from the previous week on a seasonally adjusted basis or a 10% increase on an unadjusted basis.
Meanwhile, the association’s refinancing index rose 2% for the week but was down 86% from last year. Seasonally adjusted, the MBA purchasing index rose 3% from the previous week.
This was up 9% from the previous week on an unadjusted basis and down 41% from the same week last year. According to Kahn, lower mortgage rates will improve the purchasing power of potential homebuyers who have been largely shut out since mortgage rates have doubled in the past year.
Purchase and refinance applications rose slightly last week on the back of lower mortgage rates. However, refinancing activity is still over 80% lower than last year.
The share of variable rate mortgage (ARM) applications fell to 8.8% of loans last week. Kahn said it was less than “in the 10% to 12% range over the last several months.”
Refinancing accounted for the largest share of mortgage activity for the week ended November 18, 2022, rising to 28.4% of total applications from 27.6% the previous week.
Federal Housing Authority loans as a percentage of total applications fell 10 basis points from 13.5% to 13.4% on the week.
Similarly, the share of veteran loans fell from 10.6 percent to 10.5 percent of total applications. USDA’s share of total applications was only 0.6%.
The average contract rate for 30-year fixed-rate mortgages with outstanding loan balances was reduced from 6.90% to 6.67%, and the average contract rate for 30-year fixed-rate mortgages years and the jumbo loans is $647,200 – down 6.3% from 6.5% last week.
Reference Source: MPA
