\n<\/p>\n
Mortgage application volume dropped 1.3% for the week ending on April 8, from the previous week, as mortgage rates eclipsed the 5% mark. <\/p>\n
Refinance applications fell 5% from the prior week <\/a>and 62% from the same week a year ago, according to the Mortgage Bankers Association<\/strong>‘s weekly survey. <\/p>\n \u201cMortgage rates have spiked more than 1.5 percentage points thus far in 2022,\u201d Mike Fratantoni, MBA\u2019s senior vice president and chief economist, said in a statement. \u201cThe jump in mortgage rates will slow the housing market and further reduce refinance demand the rest of the year.\u201d <\/p>\n Mortgage rates across all loan types continued an upward trend with the 30-year fixed rate exceeding 5.13%<\/a> this week in the highest rate since November 2018, according to Joel Kan, MBA\u2019s associate vice president of economic and industry forecasting. <\/p>\n Higher mortgage rates pushed up borrower interest in adjustable rate mortgages, with that share of applications last week increasing to 7.4%, the highest since June 2019. Refinance share of all applications dipped to 37.1% last week from 38.8% from the previous week. <\/p>\n The FHA share of total applications rose to 9.5% from the previous week\u2019s 9.2%. While the VA share of total applications climbed to 9.9% from 9.8% a week earlier, the USDA share remained unchanged at 0.5%. <\/p>\n On the purchase side, the association expects higher home prices, mortgage rates, and ongoing supply constraints to lead to a decline in existing home sales. Despite the sluggish sales in existing home sales this year, growth in new residential sales<\/a> and the rapid rise in housing prices is forecast to deliver a 4% annual growth in purchase origination volume, setting a record.<\/p>\n The MBA forecasts that purchase originations will eclipse $1.7 trillion in 2022, a 4% increase from 2021, citing faster-than expected mortgage rate increases, potential actions from the Federal Reserve to curb inflation. Refinance originations are expected to fall 64% to $841 billion this year and decline another 20% in 2023. <\/p>\n The survey, conducted since 1990, covers more than 75% of the retail residential mortgage applications.<\/p>\n The post Mortgage applications continue fall amid 5% rate<\/a> appeared first on HousingWire<\/a>.<\/p>\n