MBA: Mortgage Applications Decrease in Latest Weekly Survey

… The Refinance Index decreased 5 percent from the previous
week and was 75 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent
compared with the previous week and was 14 percent lower than the same week one year ago.

“Mortgage rates fell for the fourth time in five weeks, as concerns of weaker economic growth and the
recent stock market sell-off drove Treasury yields lower. Mortgage applications decreased to its lowest
level since December 2018, as the purchase market continues to struggle with supply and affordability
challenges,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “With
the 30-year fixed rate at 5.33 percent, the refinance market continues to shrink, led by larger decreases
last week for FHA and VA refinance applications. The refinance index was 75 percent below last year’s
level, when rates were more than 200 basis points lower.”

Added Kan, “Purchase applications last week were 14 percent lower than last year, with more activity in
the larger loan sizes. Demand is high at the upper end of the market, and supply and affordability
challenges are not as detrimental to these borrowers as they are to first-time buyers.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) decreased to 5.33 percent from 5.46 percent, with points decreasing to 0.51 from 0.60
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased
from last week.
emphasis added