Tag Archives: Mortgage Bankers Association (MBA)

With mortgage rates spiking upward, mortgage application volume took another hit, falling for the fourth consecutive week, as markets continued to re-assess the prospects for the economy and the path of monetary policy.

Mortgage application volume fell yet again, remaining at multi-decade lows, as the MBA reported an 8% decline in overall refis apps, which now comprise just 30% of all applications nationwide.

After falling back toward the 5%-mark, Freddie Mac reports that mortgage rates rose more than 40-basis points this week, as continued slowdown in economic growth weighs on the housing market.

Despite overall mortgage application volume dipping 1.2% week-over-week, the MBA reports government mortgage apps rose 4% over last week, as a slight decline in rates may be enticing to first-time buyers.

The MBA reports July purchase mortgage applications for new homes dipped 16.1% year-over-year, as high prices and economic instability continue to force the nation’s home buyers to reconsider their options.

With IMBs reporting an overall net loss of $82 on each loan they originated in Q2, one analyst notes that “the second quarter of 2022 did not yield the usual Spring seasonal pick-up in purchase activity."

Following the up-and-down pattern of the 10-year Treasury, mortgage rates fell to 5.13% this week according to Freddie Mac, a week after shooting up to well above the 5% mark.

As mortgage rates jumped back well above the 5%-mark last week, the MBA reports overall mortgage app volume falling 2.3% week-over-week, crashing to lows last seen more than two decades ago.

Despite a four-month low reported in mortgage rates, overall application volume rose just 0.2% week-over-week, with a decline in purchase activity offset by an increase in refis.

“Credit availability fell last month to the lowest level since May 2013, as lenders streamlined their loan offerings in this declining volume environment,” said Joel Kan, MBA’s Associate VP of Economic and Industry Forecasting.