MBA Weekly Applications Survey April 6, 2022: As Rates Push 5%, Applications Drop Again
For the third week in a row, mortgage interest rates have crept closer to 5%, taking a toll on mortgage applications, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 1.
The application Index declined 6.3 percent from the previous week. The refinance share of mortgage activity decreased to 38.8 percent of total applications from 40.6 percent the last week.The Purchase Index fell by 3% from the previous week.
“Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “As higher rates reduce the incentive to refinance, application volume dropped to its lowest level since the spring of 2019.” Read More