by Calculated Risk May 29, 2024 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Fall in Mortgage Applications
According to data from the Mortgage Bankers Association’s (MBA) Weekly Survey of Mortgage Applications for the week ending May 24, 2024, mortgage applications fell 5.7% from the previous week.
The Market Composite Index, a measure of mortgage application volume, was down 5.7% from the previous week on a seasonally adjusted basis. The unadjusted index was down 6.3% from the previous week. The Refinance Index was down 14% from the previous week and up 12% from the same week a year ago. The seasonally adjusted purchasing index fell 1 percent from the previous week. The unadjusted purchase index was down 3 percent from the previous week and down 10 percent from the same week a year ago.
“Mortgage rates rose for the first time in four weeks, with 30-year fixed rates rising to 7.05%, with all other loan types also increasing. Rising rates led to a decline in mortgage applications heading into Memorial Day weekend,” said Joel Kang, MBA vice president and deputy chief economist. “Both purchase and refinance applications declined, pushing overall activity to the lowest level since early March. Borrowers remain sensitive to small increases in interest rates, impacting the refinance market, with purchase applications remaining below last year’s levels. The number of existing homes for sale remains limited, leaving many buyers struggling to find a property in their price range that meets their needs.”
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased from 7.01% to 7.05%, and points for loans with an 80% loan-to-value ratio (LTV) increased from 0.60 (including origination fees) to 0.63.
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The first chart shows the MBA Mortgage Purchase Index.
Purchasing activity was down 10% year-over-year on an unadjusted basis, according to the MBA.
Red is the four-week average (blue is weekly).
Purchase application activity is up slightly from lows in late October 2023 and remains below the lowest levels seen during the housing bubble collapse.
Rising mortgage rates caused the refinance index to fall sharply in 2022 before remaining roughly flat since then and recently increasing slightly.