Mortgage applications decreased 5.4% on a seasonally adjusted basis from one week earlier, according to the Market Composite Index data from the Mortgage Bankers Association‘s (MBA) Weekly Mortgage Applications Survey for the week ending February 11.
On an unadjusted basis, the index decreased 3% compared with the previous week. The Refinance Index decreased 9% from the previous week and was 54% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index increased 5% compared with the previous week and was 7% lower than the same week one year ago.
“Mortgage rates increased across the board last week following the recent rise in Treasury yields, which have moved higher due to unrelenting inflationary pressures and increased market expectations of more aggressive policy moves by the Federal Reserve,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The 30-year fixed rate saw the largest single-week increase since March 2020 and was above the 4 percent mark for the first time since 2019. Consistent with this period of higher mortgage rates, refinance applications fell 9 percent last week and stood at around half of last year’s pace. The refinance share of applications was also at its lowest level since July 2019.”
“Purchase applications saw a modest decline over the week, with government purchase applications accounting for most of the decrease,” adds Kan. “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000.”
The refinance share of mortgage activity decreased to 52.8% of total applications from 56.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5% of total applications.
The FHA share of total applications increased to 8.3% from 8% the week prior. The VA share of total applications decreased to 9.3% from 10% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.
Image by Pratap Sankar is licensed under CC BY-NC 2.0
