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Economy in Brief

U.S. Mortgage Applications Rose Slightly in the Latest Week
by Kathleen Stephansen, CBE  August 10, 2022

• Purchase applications declined in the week of August 5.

• Refinancing applications rose.

• Mortgage rates rose or remained stable.

Mortgage applications increased 0.2% (-62.9% y/y) from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending August 5, 2022. This represents the second consecutive weekly rise in applications, following four consecutive weekly declines. Purchase applications declined 1.4% (-18.5% y/y) in the week ended August 5, following a 1.0% (-15.8% y/y) rise in the week ended July 29. Applications to refinance an existing mortgage loan rose 3.5% (-82.0% y/y), after a rise of 1.5% (-82.1% y/y) the week prior.

The share of applications for refinancing an existing loan rose in the week of August 5 to 32.0% from 30.8% the previous week. The percentage of applications that were ARMs fell to 7.4% from 8.4% in the week ended July 29.

Applications for fixed-rate loans rose 1.3% (-64.6% y/y) in the week of August 5, after a rise of 1.9% (-63.9% y/y) in the week of July 29. Applications for adjustable-rate mortgages fell 11.5% (-13.0% y/y) following a decline of 5.8% (-6.4% y/y) in the prior week.

The effective rate on a 30-year fixed-rate loan rose to 5.71% in the week of August 5, from 5.62% in the prior week. The rate on 15-year fixed-rate mortgages edged down ever so slightly to 4.89% from 4.90%. The rate on 30-year Jumbo loan rose to 5.26% in the August 5 week from to 5.17%, while the rate on 5-year ARMs rose to 4.83% from 4.81% in the July 29 week.

The average loan size was up 1.1% at $374,700 in the week of August 5. The series high of $401,900 was reached in the week ended May 6. The average size of a purchase loan was up 0.8% to $416,300. The average refinancing loan size rose 3.7% to $286,000.

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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