Total mortgage applications fell for the second week in a row according to the Mortgage Bankers Association’s weekly survey (MBA)
The Market Composite Index decreased 2.2% on a seasonally adjusted basis from one week earlier.
- The refinance index decreased 4.0% from the previous week and was down 39% from the same week one year ago.
- The purchase index actually increased 2.0% from the previous week and the unadjusted index was also up 5.0% from the same week one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement “After reaching a recent high in the last week of January, the refinance index has since fallen 26 percent to its lowest level since September 2020.” He also noted that rates have jumped 36 basis points since the end of January.
- The weekly survey finds that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 3.28% from 3.26%, with points decreasing to 0.41 from 0.43.
A lot of people are focusing on the overall drop in demand, but the bigger story seems to be the increase in purchases. Despite rising rates and home prices, demand for real estate is holding strong. While it is true that many Americans are being priced out of the market, the continued growth in demand highlights the current appetite for homeownership.