by Calculated Risk on 6/08/2022 07:00:00 AM
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending June 3, 2022. This week’s results include an adjustment for the Memorial Day
… The Refinance Index decreased 6 percent from the previous
week and was 75 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 7 percent from one week earlier. The unadjusted Purchase Index decreased 18 percent
compared with the previous week and was 21 percent lower than the same week one year ago.
“Weakness in both purchase and refinance applications pushed the market index down to its lowest level
in 22 years. The 30-year fixed rate increased to 5.4 percent 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,” said Joel Kan, MBA’s Associate
Vice President of Economic and Industry Forecasting. “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.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) increased to 5.40 percent from 5.33 percent, with points increasing to 0.60 from 0.51
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.