Mortgage market index falls to 22-year low -MBA

Applied Energetics

08/06/2022 12:00

June 8 (Reuters) - A measure of mortgage loan application
volume fell to its lowest level in 22 years last week, Mortgage
Bankers Association data showed on Wednesday, as the Federal
Reserve's moves to cool the interest-rate sensitive housing
sector continue to have an impact.
    The MBA said its Market Composite Index, which includes
purchase and refinance applications, fell 6.5% on a seasonally
adjusted basis to 288.4, compared to 645.4 one year ago. 
    That was despite the average contract rate on a 30-year
fixed-rate mortgage remaining off highs it reached four weeks
ago. The rate rose to 5.4% for the week ended June 3 after three
weeks of declines.
    Overall though mortgage rates have risen at the sharpest
pace in decades since the start of the year as the central bank
signaled it would be more aggressive in dampening demand across
the economy in order to help quell high inflation.
    The MBA said its Purchase Composite Index, a measure of all
mortgage loan applications for purchase of a single family home,
fell 7.1% from a week earlier and its Refinance Index declined
5.6%.
    How quickly the Fed is able to sap the housing market's
double-digit annual price growth remains to be seen, with
competition fueled by record-low housing stock and an extremely
tight job market. 
    

 (Reporting by Lindsay Dunsmuir; Editing by Catherine Evans)
 ((Lindsay.Dunsmuir@thomsonreuters.com; +1 646 384 8221;))