According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased during the final two weeks of 2022, with rates up for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Higher rates – combined with the holiday season – led to a drop in demand for mortgage applications. Joel Kan, MBA’s vice president and deputy chief economist, says home purchase activity has slowed. “Purchase applications have been impacted by slowing home sales in both the new and existing segments of the market,” Kan said. “Even as home-price growth slows in many parts of the country, elevated mortgage rates continue to put a strain on affordability and are keeping prospective home buyers out of the market.” Demand for home purchase loans fell 12.2 percent over the past two weeks compared with two weeks prior. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
