Mortgage applications decline, loan size second highest in MBA history
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Uncertainty around Fed policy and concerns over the war in Ukraine resulted in a 1.2% drop in mortgage applications for the week ending March 11, 2022, according to data from the Mortgage Bankers Association (MBA) weekly mortgage application survey.
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Additionally, the MBA said the average loan size for purchase requisitions remained high at $453,200 – the second highest amount in the MBA’s survey.
“Mortgage rates continue to be volatile due to significant uncertainty regarding Federal Reserve policy and the situation in Ukraine. Investors are pricing in the impacts of rapidly rising inflation in the United States and other many other parts of the world over the potential for slower economic growth due to a new episode of supply chain constraints,” Joel Kan, MBA Associate Vice President for Economics and Forecasting industry, said in a press release. “After falling two weeks ago, the 30-year fixed rate mortgage rose last week to 4.27% – the highest since May 2019. Rates are now about a percentage point higher than a year ago and continue to hamper refinance activity. Refinances have declined for conventional and government loans.”
The Refinance Index was also down 3% from the previous week and was 49% lower than the same week a year ago. The seasonally adjusted shopping index was up 1% from the previous week, while the unadjusted shopping index was up 2% from the previous week and was 8% lower than the same week ago. one year old.
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“Purchase inquiries increased slightly, with both conventional and VA loan inquiries seeing gains. The average loan size for purchase requisitions remained high at $453,200 – the second highest amount in the MBA survey,” Kan added.
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