by calculated risk May 15, 2024 07:00:00 AM
From MBA: Mortgage applications increase in latest MBA weekly survey
According to data from the Mortgage Bankers Association’s (MBA) Mortgage Applications Weekly Survey for the week ending May 10, 2024, the number of mortgage applications increased 0.5% from the previous week.
The market composite index, which measures the number of mortgage loan applications, rose 0.5% from a week ago on a seasonally adjusted basis. On an unadjusted basis, the index rose 0.3% from the previous week. The refinance index rose 5% from the previous week and 7% from the same week last year. The seasonally adjusted purchasing index fell 2% from the previous week. The unadjusted purchasing index decreased by 2% compared to the previous week; 14% decrease compared to the same week a year ago.
“U.S. Treasury yields continued to fall last week, with mortgage rates declining for the second week in a row, with the 30-year fixed rate dropping 10 basis points to 7.08%, its lowest level since early April.” said Joel Kang, MBA associate professor. President and Deputy Chief Economist. “Lower interest rates led to a slight increase in refinance applications, including another strong week for VA refinances. However, the overall level of refinance activity remains low. Applications to purchase declined, but this This was primarily due to a 9% decline in FHA purchase applications, which decreased by approximately 1%.
Kang added: “While lower interest rates are a boon for prospective homebuyers, mortgage rates are still much higher than a year ago and inventory for sale remains tight.” .
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased by 0.65 points (including origination fees) to 0.63 points for 80% loans, from 7.18% to 7.08%. Loan to Value (LTV).
Emphasis added
Click on the graph to see a larger image.
The first graph shows the MBA Mortgage Purchase Index.
Purchasing activity is down 14% year-over-year on an unadjusted basis, according to MBA.
Red is the 4-week average (blue is weekly).
Purchase application activity is up slightly from its lowest level in late October 2023 and remains below the lowest level during the housing crisis.
Due to rising mortgage rates, the refinance index will decline sharply in 2022 and have remained roughly flat since then.
