MBA Weekly Applications Survey April 20, 2022: Rising Mortgage Rates Push Down Applications
Mortgage application activity fell last week due to the highest mortgage rates in more than a decade, according to the Mortgage Bankers Association’sAssociation’s Weekly Mortgage Applications Survey for the week ending April 15TH.
The Market Composite Index fell 5.0 percent from the previous week on a seasonally adjusted basis. The refinance share of mortgage activity decreased to 35.7 percent of total applications from 37.1 percent as Refinance Index dropped by 8 percent. Moreover, the seasonally adjusted Purchase Index also fell by 3 percent.
“Ongoing concerns about rapid inflation and tighter U.S. monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “The 30-year rate has increased 70 basis points over the past month and is two full percentage points higher than a year ago. The recent surge in mortgage rates has shut most borrowers out of rate/term refinances.”
