US MBA Mortgage Applications Feb 19: -11.4% (prev -5.1%)

 

  • MBA Mortgage Applications US MBA Mortgage Applications Feb 19: -11.4% (prev -5.1%)
  • Composite Index: -11.4%. 
  • Purchase Index: -12%. Non-SA up 7% y/y.
  • Refinance Index: -11%.  Non-SA up 50% y/y.
  • 30-year mortgage rate increased to 3.08% vs. 2.96%.



Combination of higher rates, increasingly scarce inventory, and bad weather saw mortgage apps cont to decline this week, with first big fall in purchase apps in a while, now up only 7% y/y (was more like 17% last week). Given the weather issues, going not going to read too much into this, but I wouldn't be surprised to see mortgage apps level off with rates likely having bottomed and inventory issues. 

From the report:

“Mortgage rates have increased in six of the last eight weeks, with the benchmark 30-year fixed rate last week climbing above 3 percent to its highest level since September 2020. As a result of these higher rates, overall refinance activity fell 11 percent to its lowest level since December 2020, but remained 50 percent higher than a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Additionally, the severe winter weather in Texas affected many households and lenders, causing more than a 40 percent drop in both purchase and refinance applications in the state last week.”

Added Kan, “The housing market in most of the country remains strong, with activity last week 7 percent higher than a year ago. The average loan size of purchase applications increased to a record $418,000, in line with the accelerating home-price growth caused by very low inventory levels.”


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