According to the Mortgage Bankers Association weekly survey,
The Market Composite Index, a measure of mortgage loan application volume, increased 0.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The seasonally adjusted Purchase Index increased 8 percent from one week earlier. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 20 percent higher than the same week one year ago.
The Refinance Index decreased 6 percent from the previous week and was 117 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 53.4 percent of total applications from 55.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.9 percent of total applications.
The FHA share of total applications decreased to 18.8 percent from 19.9 percent the week prior. The VA share of total applications increased to 15.4 percent from 15.2 percent the week prior. The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.40 percent from 6.37 percent, with points decreasing to 0.60 from 0.62 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
But mortgage demand hasn’t been the same is 2021. Rates are higher, mortgage demand is lower. Higher home prices coupled with higher mortgage rates is bad news.
Confounded Interest - Anthony B. Sanders 