by Calculated Risk July 31, 2024, 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Fall in Mortgage Applications
According to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending July 26, 2024, mortgage applications fell 3.9% from the previous week.
The Market Composite Index, a measure of mortgage application volume, was down 3.9% from the previous week on a seasonally adjusted basis. The unadjusted index was down 4% from the previous week. The Refinance Index was down 7% from the previous week and up 32% from the same week a year ago. The seasonally adjusted purchasing index fell 2% from the previous week.The unadjusted purchasing index was down 1 percent from the previous week. That’s 14 percent lower than the same week a year ago..
“Mortgage rates were little changed last week, with the 30-year fixed mortgage rate remaining unchanged at 6.82 percent,” said Mike Fratantoni, MBA senior vice president and chief economist. “There has been a small surge in refinance activity in recent weeks, particularly for FHA and VA loans. There was a sharp drop in VA refinance applications last week, which dragged down the overall results. Borrowers may be waiting for signs of lower mortgage rates as the Federal Reserve begins to cut short-term interest rates. Purchase volumes also declined slightly due to continued homebuying difficulties.”
…
The average contract interest rate for 30-year fixed-rate mortgages for conforming loan balances (under $766,550) remained unchanged at 6.82 percent, while points for loans with an 80 percent LTV increased from 0.59 (including origination fees) to 0.62.
Add emphasis
Click on the graph to enlarge the image.
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 is up about 6% from its lows in late October 2023 but remains below the lows 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.
