by Calculated Risk July 17, 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 Applications Survey for the week ending July 12, 2024, mortgage applications increased 3.9% from the previous week.
The Market Composite Index, a measure of mortgage application volume, increased 3.9% from the previous week on a seasonally adjusted basis. The unadjusted index increased 30% from the previous week. The Refinance Index increased 15% from the previous week and was 37% higher than the same week a year ago. The seasonally adjusted purchasing index fell 3% from the previous week.The unadjusted purchasing index increased 22% from the previous week, That’s 14 percent lower than the same week a year ago..
“Mortgage rates fell last week as recent signs of slowing inflation and the increased likelihood of a Fed rate cut later this year pushed rates lower. The 30-year fixed rate fell to 6.87%, the lowest rate since March 2024,” said Joel Kang, MBA vice president and deputy chief economist. “Applications increased 4%, driven by a 15% increase in refinances, reaching the highest level since August 2022. Most of the increase was due to FHA and VA refinance applications, which are likely recently originated loans that carry even higher interest rates than currently being offered. Despite last week’s rate declines, purchase applications remain sluggish, down 14% compared to last year’s pace.”
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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 7.00% to 6.87%, and points for 80% loan-to-value (LTV) loans decreased from 0.60 (including origination fees) to 0.57.
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The first chart shows the MBA Mortgage Purchase Index.
Purchasing activity was down 14% 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 picking up slightly.
