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Economy in Brief

U.S. Mortgage Applications Rebound in June 10 Week
by Carol Stone, CBE  June 15, 2022

• Both purchase and refinance loan applications increased.

• Both fixed rate and adjustable rate loan applications increased.

• Interest rate on 30-year fixed rate loan highest since November 2008.

The Mortgage Bankers Association's Loan Applications Index rebounded 6.6% w/w (-54.3 y/y) in the week ended June 10 to 307.4 (week ended March 16, 1990 =100), basically reversing the prior week's 6.5% decline.

Applications for home purchase bounced 8.1% w/w (-15.5% y/y) versus the 7.1% decline the week before. Refinancing applications rose 3.7% w/w (-75.7% y/y), after a 5.6% decline the prior week, which was the twelfth reductions in the previous 13 weeks.

The share of applications for refinancing edged down to 31.7% in the week ended June 10 from 32.2% in the previous week. The percentage of applications that are ARMs fell for a fifth consecutive week, reaching 8.1%.

Applications for fixed-rate loans rose 6.7% w/w (-56.3% y/y) in the June 10 week following a 6.0% decline the previous week. Meanwhile, applications for adjustable-rate mortgages increased 5.5% w/w (-2.8% y/y), their first increase since the week ended May 6.

The effective interest rate on 30-year fixed-rate loans rose 29 basis points to 5.86% in the week ended June 10 and was the highest since 6.23% in the week ended November 21, 2008. In the June 10 week, the rate on 15-year fixed-rate mortgages was 4.99% in the June 10 week, up 21 basis points from the prior week. The rate on 30-year Jumbos increased 30 basis points to 5.41%. The rate on 5-year ARMs rose ten basis points to 4.86%.

The average loan size eased $4,000 to $376,000 in the June 10 week, that is, a 1.1% w/w decrease. It has fallen from $401,900 in the week ended May 6. The average size of a purchase loan declined 1.5% w/w to $419,000, its smallest amount since the week ended January 14. The average refinancing loan size edged back up slightly to $283,400 in the June 10 week from $281,500 the week before.

This survey covers over 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.

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