by Calculated Risk on 11/09/2022 07:00:00 AM
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending November 4, 2022.
… The Refinance Index decreased 4 percent from the previous
week and was 87 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 1 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent
compared with the previous week and was 41 percent lower than the same week one year ago.
“Mortgage rates edged higher last week following news that the Federal Reserve will continue raising
short-term rates to combat high inflation. The 30-year fixed rate remained above 7 percent for the third
consecutive week, with increases for most loan types,” said Joel Kan, MBA’s Vice President and Deputy
Chief Economist. “Purchase applications increased for the first time after six weeks of declines but
remained close to 2015 lows, as homebuyers remained sidelined by higher rates and ongoing economic
uncertainty. Refinances continued to fall, with the index hitting its lowest level since August 2000.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) increased to 7.14 percent from 7.06 percent, with points increasing to 0.77 from 0.73
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.