The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 13, 2023, maintains mortgage application submissions rose 27.9 percent from one week prior.
“Mortgage application activity rebounded strongly in the first full week of January, with both refinance and purchase activity increasing by double-digit percentages compared to last week, which included the New Year’s holiday observance,” MBA Senior Vice President and Chief Economist Mike Fratantoni said. “Despite these gains, refinance activity remains more than 80 percent below last year’s pace, and purchase volume remains 35 percent below year-ago levels.”
Per the MBA, survey respondents include mortgage bankers, commercial banks, and thrifts – with the poll covering more than 75 percent of all domestic retail residential mortgage applications while being conducted weekly since 1990.
“Mortgage rates are now at their lowest level since September 2022 and about a percentage point below the peak mortgage rate last fall,” Fratantoni said. “As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”
The survey showed the refinance share of mortgage activity rose to 31.2 percent of total applications from 30.7 percent the previous week, while the adjustable-rate mortgage (ARM) share of activity declined to 6.6 percent of total applications.
Additionally, the analysis indicated the Federal Housing Administration (FHA) share of total applications fell to 13 percent from 13.4 percent the week prior. The Veterans Affairs (VA) share of total applications declined to 11.8 percent from 13.2 percent the previous week.