Mortgage Applications Fall to Two-Year Low as Rates Continue to Increase

Source: Mortgage Bankers Association

Mortgage applications declined to a two-year low in the past week, as mortgage rates climbed higher. XHB is up 0.84%, while ITB is up 0.34%

• The Market Composite Index for the week ending February 18, 2022 fell by 13.1% to mark the lowest level since December 2019.
• The Refinance Index declined by 16% from the previous week, and by 56% from the same week in 2021, while the Purchase Index fell 10% from the week earlier.
• MBA Associate Vice President Joel Kan attributed the decrease to higher mortgage rates, with the 30-year fixed-rate almost a full percentage point higher at 4.06%.
• Kan said purchase applications have declined for three straight weeks, with the average loan size remaining close to record highs.
• Average contract interest rates for 30-year fixed-rate mortgages with conforming loan balances increased to 4.06%, and to 3.84% for jumbo loan balances.
• Average contract interest rates for the 15-year fixed-rate mortgages also jumped to 3.42%.