U.S. Mortgage Applications Improve Again
by:Tom Moeller
|in:Economy in Brief
Summary
• Loan applications increased for third consecutive week.
• Refinancing applications rebounded while purchase applications were essentially unchanged.
• Interest rates eased slightly.
The Mortgage Bankers Association reported that mortgage applications rose 4.2% (-53.3% y/y) in the week ended June 17 following a 6.6% increase during the prior week.
Applications for home purchase improved 7.9% (-9.4% y/y) after rising 8.1% in the prior week. Refinancing applications fell 3.1% (-77.1% y/y) and reversed the prior week's 3.7% gain.
The share of applications for refinancing fell to 29.7% in the week ended June 17 from 31.7% in the previous week. The percentage of applications that were ARMs rose to 10.6% after falling for five consecutive weeks.
Applications for fixed-rate loans rose 1.3% (-56.6% y/y) in the June 17 week following a 6.7% rise the previous week. Applications for adjustable-rate mortgages surged 36.6% (26.1% y/y) after rising 5.5% in the week prior.
The effective interest rate on 30-year fixed-rate loans rose to 6.20% in the week ended June 17 from 5.86% in the prior week. Rates have risen from a low of 3.11% in the third week of September, 2021. The rate on 15-year fixed-rate mortgages rose to 5.26% from 4.99% in the prior week. The rate on 30-year Jumbos increased to 5.62% while the rate on 5-year ARMs rose to 5.09%.
The average loan size increased to $382,800 in the week of June 17. It has fallen from a high of $401,900 in the week ended May 6. The average size of a purchase loan edged higher to $422,100. The average refinancing loan size increased to $290,000.
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.
These figures for weekly mortgage applications and interest rates are available in Haver's SURVEYS database.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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