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Economy in Brief

U.S. Mortgage Applications Fall to Lowest Level Since 2000
by Tom Moeller  June 20, 2022

• Purchase & refinancing applications both decline.

• Mortgage interest rates increase.

The Mortgage Bankers Association reported that mortgage applications declined 6.3% (-59.7% y/y) in the week ended July 15, the third consecutive week of decline. Purchase applications weakened 7.3% (-18.7% y/y), also the third consecutive fall. Applications to refinance an existing mortgage loan fell 4.3% (-79.9% y/y) after rising 2.2% in the previous week.

The share of applications for refinancing an existing loan rose to 31.4%, the highest level in five weeks. The percentage of applications that were ARMs was little-changed at 9.5%.

Applications for fixed-rate loans fell 6.3% (-62.4% y/y), the third consecutive weekly decline. Applications for adjustable-rate mortgages fell 6.6% (+17.7% y/y) after easing 0.5% in the previous week.

The effective rate on a fixed-rate loan rose to 6.0% from 5.9% in the prior week. The rate on 15-year fixed-rate mortgages eased to 5.07%. The rate on 30-year Jumbo loan rose to 5.42% while the rate on 5-year ARMs fell to 4.96%.

The average loan size decreased 1.9% to $365,800 in the week of July 15. It has fallen from a series high of $401,900 reached in the week ended May 6. The average size of a purchase loan fell 2.1% to $406,600. The average refinancing loan size eased 0.3% to $276,500.

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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