U.S. Mortgage Applications Dropped in the Latest Two-Week Period
Summary
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Total mortgage applications dropped 13.2% in the week of December 30 from 2 weeks earlier.
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Applications for loans to purchase and to refinance dropped in the last two weeks of 2022.
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The average effective rates on fixed-rate loans remain at multi-year highs.
Mortgage applications decreased 13.2% from two weeks earlier in the week ended December 30. These data come from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, with data for the weeks ending December 23 and 30 released simultaneously. Applications declined by 3.3% (-66.1% y/y) in the week ended December 23 and by 10.3% (-67.8% y/y) in the week ended December 30. Applications for loans to purchase a house declined 0.2% (-41.0% y/y) in the week ended December 23 and by 12.0% (-42.2% y/y) in the week ended December 30. Applications for refinancing a loan decreased by 12.4% (-86.5% y/y) in the December 23 week and by 4.4% (-86.8% y/y) in the December 30 week.
The share of applications for refinancing an existing loan was 28.8% in the week of December 23 and increased to 30.3% in the week of December 30. The percentage of applications that were ARMs was 7.9% in the December 23 week and 7.3% the following week.
The effective rate on a 30-year fixed-rate loan continued to rise over the latest two-week period, by 10bps to 6.61% in the week ended December 23 and to 6.79% in the week ended December 30. Similarly, the rate on 15-year fixed-rate mortgages rose 18bps to 6.12% in the week of December 23 and to 6.23% in the December 30 week, its highest since October 2008. The rate on 30-year Jumbo loan rose 10bps to 6.22% in the December 23 week and to 6.26% the following week. The rate on the 5-year ARM edged up 2bps to 5.80% in the week of December 23 and to 5.83% in the week of December 30.
The average loan size rose 1.1% w/w to $362,400 in the week ended December 23 but decreased 4.1% w/w to $347,600 in the week ended December 30. The series high of $401,900 was reached in the week ended May 6. The average size of a purchase loan decreased 0.1% w/w to $397,600 in the week ended December 23 and by 2.5% w/w to $387,600 in the week ended December 30. The average loan size to refinance a mortgage rose 1.6% w/w to $275,400 in the December 23 week but declined 7.3% to $255,400 in the week ended December 30.
The Mortgage Bankers Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver's SURVEYS database.
Kathleen Stephansen, CBE
AuthorMore in Author Profile »Kathleen Stephansen is a Senior Economist for Haver Analytics and an Independent Trustee for the EQAT/VIP/1290 Trust Funds, encompassing the US mutual funds sponsored by the Equitable Life Insurance Company. She is a former Chief Economist of Huawei Technologies USA, Senior Economic Advisor to the Boston Consulting Group, Chief Economist of the American International Group (AIG) and AIG Asset Management’s Senior Strategist and Global Head of Sovereign Research. Prior to joining AIG in 2010, Kathleen held various positions as Chief Economist or Head of Global Research at Aladdin Capital Holdings, Credit Suisse and Donaldson, Lufkin and Jenrette Securities Corporation.
Kathleen serves on the boards of the Global Interdependence Center (GIC), as Vice-Chair of the GIC College of Central Bankers, is the Treasurer for Economists for Peace and Security (EPS) and is a former board member of the National Association of Business Economics (NABE). She is a member of Chatham House and the Economic Club of New York. She holds an undergraduate degree in economics from the Universite Catholique de Louvain and graduate degrees in economics from the University of New Hampshire (MA) and the London School of Economics (PhD abd).
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