US mortgage applications fall back after double-digit jump

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The refinance index was down 7% from the week before and was 52% lower than the same period a year ago. The seasonally adjusted purchase index saw a 10% week-over-week decline and was 12% lower than the same week in 2021.

“With rates 87 basis points higher than the same week a year ago, refinance applications continued to decrease,” Kan added. “Purchase activity slowed after the previous week’s gain. Both conventional and FHA purchase applications saw proportional declines, resulting in purchase activity overall dropping 10%. The average loan size again hit another record high at $446,000. Activity continues to be dominated by larger loan balances, as inventory remains tight for entry-level buyers.” 

The refinance share of mortgage activity shrank to 56.2% of total applications from 57.3%, while the adjustable-rate mortgage share of activity held steady at 4.5% of total applications.