Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey reported that mortgage applications decreased 8.8% for the week ending April 14, 2023.
This drop in mortgage loan application volume is attributed to the bump in higher rates. The breakout in specific mortgage types include:
The refinance Index decreased 6% from the previous week and was 56% lower than the same week in 2022.
The seasonally adjusted Purchase Index decreased 10% from one week earlier and decreased 9% as compared with the previous week and 36% lower than in 2022.
The 30-year fixed mortgage rate increased 13 basis points to 6.43 percent, which led to purchase applications declining 10%.
Affordability continues to challenge buyers compounded by the inventory shortages across every market.
The drop in FHA purchase applications, along with the increase in the average purchase loan size to its highest level in a month, are pressuring first-time buyers to pull back.
With the higher rates, the number of considering refinancing clearly held-off on jumping in currently.
Still, the refinance share of total mortgage activity increased to 27.6% of total applications from 27.0% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.3% of total applications.
The FHA share of total applications increased to 12.7% from 12.3% the week prior.
The VA share of total applications decreased to 11.7% from 12.8% the week prior.
The USDA share of total applications remained unchanged at 0.5% from the week prior.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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