Mortgage Rates Inch Up Across the Board, Applications Increased but Remain Well Below Last Year’s Levels

Mortgage Weekly Update

On Thursday, September 22, 2022, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), stating that the 30-year fixed-rate mortgage (FRM) averaged 6.29 percent, up from last week when it averaged 6.02 percent. The 15-year fixed-rate mortgage averaged 5.44 percent, up from last week when it averaged 5.21 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.97 percent, up from last week when it averaged 4.93 percent.

“The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” said Sam Khater, Freddie Mac’s Chief Economist. “Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels.”

According to the Mortgage Bankers Association (MBA), mortgage applications increased 3.8 percent on a seasonally adjusted basis from one week earlier. The Refinance Index increased 10 percent from the previous week and was 83 percent lower than the same week one year ago. 

“Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected that they will announce — in their efforts to slow inflation — another sizable short-term rate hike. Mortgage rates followed suit last week, increasing across the board, with the 30-year fixed rate jumping 24 basis points to 6.25 percent — the highest since October 2008,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “As with the swings in rates and other uncertainties around the housing market and broader economy, mortgage applications increased for the first time in six weeks but remained well below last year’s levels, with purchase applications 30 percent lower and refinance activity down 83 percent. The weekly gain in applications, despite higher rates, underscores the overall volatility right now as well as Labor Day-adjusted results the prior week.”

More housing news

Mortgage applications for new home purchases decreased 10.1 percent compared with a year ago, according to the MBA Builder Application Survey (BAS) data for August 2022. But compared with July 2022, applications increased by 17 percent. 

“New home purchase applications were down year-over-year but rebounded in August after four consecutive months of declines, despite higher mortgage rates, declining homebuilder sentiment, and looming economic uncertainty,” Kan said. “The average loan size decreased for the fourth straight month, which is a sign of slowing home-price growth in the new homes market.”

The level of commercial/multifamily mortgage debt outstanding increased by $99.5 billion (2.3 percent) in the second quarter of 2022, according to the MBA. 

Additional mortgage activity

  • The refinance share of mortgage activity increased to 32.5 percent of total applications from 30.2 percent the previous week. 
  • The adjustable-rate mortgage (ARM) share of activity remained unchanged at 9.1 percent of total applications.
  • The FHA share of total applications decreased to 13.3 percent from 13.4 percent the week prior. 
  • The VA share of total applications decreased to 10.9 percent from 11.3 percent the week prior.
  •  The USDA share of total applications decreased to 0.6 percent from 0.7 percent the week prior.

This week in mortgage rates

Mortgage rates continued to climb this week. Here’s how average rates broke down by loan type:

  • Conforming 30-year fixed-rate loans: 6.29% (up from 6.02%)
  • 15-year fixed-rate loans: 5.44% (up from 5.21%)
  • 5/1 adjustable-rate loans: 4.97% (up from 4.93%)

Check back next week for the most up-to-date mortgage and housing news.


September 15- Mortgage Rates Exceed 6%, Applications Drop Off

On Thursday, September 15, 2022,  Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), stating that the 30-year fixed-rate mortgage (FRM) averaged 6.02 percent, up from last week when it averaged 5.89 percent. 15-year fixed-rate mortgage averaged 5.21 percent, up from last week when it averaged 5.16 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.93 percent, up from last week when it averaged 4.64 percent.

“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s Chief Economist. “Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large.”

According to the Mortgage Bankers Association (MBA), mortgage applications decreased 1.2 percent from one week earlier. The Refinance Index decreased 4 percent from the previous week and was 83 percent lower than the same week one year ago. 

“The 30-year fixed mortgage rate hit the six percent mark for the first time since 2008 – rising to 6.01 percent – which is essentially double what it was a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Higher mortgage rates have pushed refinance activity down more than 80 percent from last year and have contributed to more homebuyers staying on the sidelines. Government loans, which tend to be favored by first-time buyers, bucked this trend and increased over the week, driven mainly by VA and USDA lending activity.”

More housing news

Commercial and multifamily mortgage delinquencies declined in the second quarter of 2022, according to the MBA’s latest Commercial/Multifamily Delinquency Report.

“Delinquency rates for commercial and multifamily mortgages fell again during the second quarter of 2022,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Many capital sources are seeing delinquency rates at or approaching pre-pandemic levels, which were some of the lowest delinquency rates on record.”

Freddie Mac Multifamily announced the creation of a Low-Income Housing Tax Credit (LIHTC) Syndicator Fund with Berkadia, aiding the agency’s effort to invest up to $850 million in equity annually to create and preserve affordable housing across the country. 

It’s great to see more being done on this front. Last year, teammates at Embrace founded the Wider Path Home Foundation (WPH), which supports education, community engagement, and down payment assistance to help families in underserved communities purchase quality homes and begin to build generational wealth. 

Additional mortgage activity

  • The refinance share of mortgage activity decreased to 30.2 percent of total applications from 30.7 percent the previous week. 
  • The adjustable-rate mortgage (ARM) share of activity increased to 9.1 percent of total applications.
  • The VA share of total applications increased to 11.3 percent from 10.8 percent the week prior. The
  • USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.

This week in mortgage rates

Mortgage rates rose above 6% for the first time since 2008. Here’s how average rates broke down by loan type:

  • Conforming 30-year, fixed-rate loans: 6.02% (up from 5.89%)
  • 15-year fixed-rate loans: 5.21% (up from 5.16%)
  • 5/1 adjustable-rate loans: 4.93% (up from 4.64%)

Check back next week for the most up-to-date mortgage and housing news.


September 7-Mortgage Rates Continue Higher, Refinance Share Increases

On Thursday, September 8, 2022, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), stating that the 30-year fixed-rate mortgage (FRM) averaged 5.89 percent, up from last week when it averaged 5.66 percent. 15-year fixed-rate mortgage averaged 5.16 percent, up from last week when it averaged 4.98 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.64 percent, up from last week when it averaged 4.51 percent.

According to the Mortgage Bankers Association (MBA), Mortgage applications decreased 0.8 percent from one week earlier. However the refinance share of mortgage activity increased to 30.7 percent of total applications from 30.3 percent the previous week. While the adjustable-rate mortgage (ARM) share of activity remained unchanged at 8.5 percent of total applications.

“Mortgage rates moved higher over the course of last week as markets continued to re-assess the prospects for the economy and the path of monetary policy, with expectations for short-term rates to move and stay higher for longer,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “With the 30-year fixed rate rising to the highest level since mid-June, application volumes for both purchase and refinance loans dropped. Recent economic data will likely prevent any significant decline in mortgage rates in the near term, but the strong job market depicted in the August data should support housing demand. There is no sign of a rebound in purchase applications yet, but the robust job market and an increase in housing inventories should lead to an eventual increase in purchase activity.”

“There are signs that some of the main drivers of inflation are easing, such as lower oil and other commodity prices in July, slower wage growth, and declining supply chain pressures. However, service price increases led by housing and pent-up demand for vehicles will keep inflation elevated in the coming months,” Dawit Kebede, senior economist for the Credit Union National Association, also said in a statement.

More in mortgage & housing news

  • The refinance share of mortgage activity increased to 30.7 percent of total applications from 30.3 percent the previous week.
  • The FHA share of total applications increased to 13.3 percent from 13.0 percent the week prior.
  • The VA share of total applications decreased to 10.8 percent from 11.1 percent the week prior. 

This week in mortgage rates

Mortgage rates moved higher this week. Here’s how average rates broke down by loan type:

  • Conforming 30-year, fixed-rate loans: 5.89% (up from 5.66%)
  • 15-year, fixed-rate loans: 5.16% (up from 4.98%)
  • 5/1 adjustable-rate loans: 4.64% (up from 4.51%)

Check back next week for the most up-to-date mortgage and housing news.


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