by Calculated Risk July 10, 2024, 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Increase in Mortgage Applications
Mortgage applications for the week ending July 5, 2024, fell 0.2% from the previous week, the Mortgage Bankers Association said in a report, adding that last week’s results included an adjustment for the Fourth of July holiday.
The composite market index, a measure of mortgage application volume, fell 0.2% from the previous week on a seasonally adjusted basis. The unadjusted index was down 20% from the previous week. The refinance index was down 2% from the previous week and up 28% from the same week a year ago. The seasonally adjusted purchasing index rose 1% from the previous week.The unadjusted purchasing index fell 19% from the previous week, That’s 13 percent lower than the same week a year ago..
“The recent increase in mortgage rates has slowed demand. Mortgage applications were roughly flat last week as mortgage rates hovered around 7 percent,” said Joel Kang, MBA vice president and deputy chief economist. “Purchase activity increased slightly, primarily due to an increase in FHA and VA applications. Refinance applications declined for the fourth consecutive week in line with rising interest rates. Although home equity appreciation has been significant in recent years, most borrowers have little incentive to refinance at current interest rates.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased from 7.03% to 7.00%, and points for 80% loan-to-value (LTV) loans decreased from 0.62 (including origination fees) to 0.60.
Add emphasis
Click on the graph to enlarge the image.
The first chart shows the MBA Mortgage Purchase Index.
Purchasing activity was down 13% year-over-year on an unadjusted basis, according to the MBA.
Red is the four-week average (blue is weekly).
Purchase application activity has increased slightly from lows in late October 2023 but 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.
