by Calculated Risk June 19, 2024 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Increase in Mortgage Applications
According to the Mortgage Bankers Association’s (MBA) weekly mortgage application survey for the week ending June 14, 2024, mortgage applications increased 0.9% from the previous week.
The composite market index, a measure of mortgage application volume, increased 0.9% from the previous week on a seasonally adjusted basis. The unadjusted index decreased 0.1% from the previous week. The refinance index decreased 0.4% from the previous week and is up 30% from the same week a year ago. The seasonally adjusted purchasing index increased 2 percent from the previous week. The unadjusted purchasing index was down 0.1% from the previous week. That’s 12 percent lower than the same week a year ago..
“Mortgage rates declined last week following the latest inflation data and FOMC meeting, with the 30-year conforming rate dropping to 6.94%, its lowest level since late March,” said Mike Fratantoni, MBA’s SVP and chief economist. “Purchase applications increased slightly this week, led by applications for conventional loans. Refinance applications also declined slightly this week but remain about 30% higher than this time last year.”
Fratantoni added, “While purchase volumes are still more than 10 percent below last year’s pace, the MBA expects home sales to recover over the remainder of the year as more inventory comes onto 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 7.02% to 6.94%, and points for loans with an 80% LTV (loan-to-value ratio) decreased from 0.65 (including origination fees) to 0.61.
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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.
