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Economy in Brief

U.S. Mortgage Applications Improve Again
by Tom Moeller  June 22, 2022

• 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.

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