The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2% on a seasonally adjusted basis from one week earlier, according to data from the Mortgage Bankers Association‘s (MBA) Weekly Mortgage Applications Survey for the week ending March 11.
On an unadjusted basis, the Index decreased 1% compared with the previous week. The Refinance Index decreased 3% from the previous week and was 49% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 8% lower than the same week one year ago.
“Mortgage rates continue to be volatile due to the significant uncertainty regarding Federal Reserve policy and the situation in Ukraine,” observes Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Investors are weighing the impacts of rapidly increasing inflation in the U.S. and many other parts of the world against the potential for a slowdown in economic growth due to a renewed bout of supply-chain constraints. After declining two weeks ago, the 30-year fixed-rate mortgage increased last week to 4.27 percent – the highest since May 2019. Rates are now roughly a full percentage point higher than a year ago and continue to hamper refinance activity. Refinances declined for both conventional and government loans.”
“Purchase applications slightly increased, with both conventional and VA loan applications seeing gains,” adds Kan. “The average purchase application loan size remained elevated at $453,200 – the second-highest amount in MBA’s survey.”
The refinance share of mortgage activity decreased to 48.4% of total applications from 49.5% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.6% of total applications.
The FHA share of total applications remained unchanged at 8.7% from the week prior. The VA share of total applications increased to 10.5% from 10.4% the week prior. The USDA share of total applications remained unchanged at 0.5% from the week prior.