From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 2.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 11, 2022. This week’s results include an adjustment for the observance of Veterans Day.
… The Refinance Index decreased 2 percent from the previous week and was 88 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index decreased 10 percent compared with the previous week and was 46 percent lower than the same week one year ago.
“Mortgage rates decreased last week as signs of slower inflation pushed Treasury yields lower. The 30- year fixed rate saw the largest single-week decline since July 2022, dropping to 6.9 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Application activity, adjusted to account for the Veterans Day holiday, increased in response to the drop in rates – driven by a 4 percent rise in home purchase applications. Purchase applications increased for all loan types, and the average purchase loan dipped to its smallest amount since January 2021. Refinance activity remained depressed, down 88 percent over the year. There is very little refinance incentive with rates so much higher than last year.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 6.90 percent from 7.14 percent, with points decreasing to 0.56 from 0.77 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans
emphasis addedClick on graph for larger image.
The first graph shows the refinance index since 1990.