US Mortgage Applications Plunges to 22-Year Low-MBA

Source: Mortgage Bankers Association

A key measure of mortgage loan application volume plunged to its lowest level in 22 years last week as Fed moves to cool the rate hike sensitive housing sector. DXY down -0.01%, EURUSD down -0.40%

• The MBA stated that its Market Composite Index, which comprises the purchase and refinances applications, dropped 6.5% on a seasonally adjusted basis to 288.4, compared to 645.4 a year earlier.
• The average contract rate on a 30-year fixed-rate mortgage remains off highs reached four weeks ago. The rate rose to 5.4% for the week ended June 3 after three weeks of decreases.
• The Purchase Composite Index, a measure of mortgage loan applications for the purchase of a single-family home, dropped to 7.1% from a week earlier, and its Refinance Index dropped to 5.6%.
• The Fed is struggling to sap the housing market’s double-digit yearly price growth, with competition attributable to record-low housing stock and a tight job market.