Mortgage applications decreased 4.6% for the week ending May 19, 2023, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Purchase applications fell 4% from the week before, and are 30% below numbers from this time last year. Refinance applications dropped 5% from the previous week and are 44% lower than the same week in 2022.
The 30 year fixed rate jumped to 6.69% last week, its highest level since March, as the refi index fell to its lowest level in two months.
The refinance share of applications stayed steady at 27.4% of all applications. The ARM share increased to 6.7%.
Other findings include:
- The share of FHA, VA, and USDA loan applications all increased slightly from the previous week. FHA applications increased from 12.0% to 12.5%. VA applications went from 12.2% to 12.5%. USDA applications went from 0.4% to 0.5%.
- The average contract interest rate for 30-year confirming fixed-rate mortgages jumped from 6.57% to 6.69%. Points went from 0.61 to 0.66 for 80% LTV loans.
- The average contract interest rate for 30-year jumbo fixed-rate mortgages increased to from 6.46% to 6.57%. Points increased from 0.38 to 0.57 for 80% LTV loans.
- The average contract interest rate for 30-year FHA fixed-rate mortgages increased to 6.56%. Points increased to 1.24 for 80% LTV loans.
- The average contract interest rate for 15-year fixed-rate mortgages increased to 6.15. Points increased to 0.72 for 80% LTV loans.
The average contract interest rate for 5/1 ARMs increased slightly to 5.73%. Points increased to 1.19 for 80% LTV loans. “Investors remained attuned to the uncertainty around the U.S. debt ceiling and communication from several Federal Reserve officials last week, which sent Treasury yields higher, along with mortgage rates,” said MBA Vice President and Deputy Chief Economist Joel Kan. “Economic data released over the past week have also pointed to a still-resilient economy. The housing market received positive data on new residential construction – which is seen as a key solution to the lack of housing inventory.”