by Calculated Risk June 12, 2024, 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Increase in Mortgage Applications
According to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending June 7, 2024, mortgage applications increased 15.6% from the previous week.
The Market Composite Index, a measure of mortgage application volume, increased 15.6% from the previous week on a seasonally adjusted basis. The unadjusted index increased 26% from the previous week. The Refinance Index increased 28% from the previous week and was 28% higher than the same week a year ago. The seasonally adjusted purchasing index increased 9 percent from the previous week. The unadjusted purchasing index increased 19 percent from the previous week, That’s 12 percent lower than the same week a year ago..
“Mortgage rates were trending downward last week but rebounded following the better-than-expected jobs report, dropping the weekly average for 30-year fixed mortgage rates to 7.02%,” said Mike Fratantoni, MBA’s SVP and chief economist. “The decline in interest rates earlier this week meant a strong increase in refinance activity, with VA loan borrowers in particular jumping on the chance to lower their rates. Overall refinance activity is more than 27% higher than a year ago.”
Fratantoni added, “Buying activity also increased on a seasonally adjusted basis and when compared to the prior week’s holiday-adjusted levels. Multiple data sources indicate that housing inventory levels, while still historically low, are significantly higher than this time last year. This is good news for many prospective homebuyers who have been frustrated by the lack of homes on the market.”
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased from 7.07% to 7.02%, and points for loans with an 80% LTV ratio remained unchanged at 0.65 (including origination fees).
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The first chart shows the MBA Mortgage Purchase Index.
Purchasing activity was down 12% 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.
