by Calculated Risk September 18, 2024, 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Increase in Mortgage Applications
Mortgage applications for the week ending Sept. 13, 2024, increased 14.2% from the previous week, the Mortgage Bankers Association said in a report, adding that last week’s results included an adjustment for the Labor Day holiday.
The Market Composite Index, a measure of mortgage application volume, increased 14.2% from the previous week on a seasonally adjusted basis. The unadjusted index increased 26% from the previous week. The Refinance Index increased 24% from the previous week and is 127% higher than the same week a year ago. The seasonally adjusted purchasing index rose 5% from the previous week.The unadjusted purchasing index increased 15% from the previous week, That’s 0.4 percentage points lower than the same week a year ago..
“Applications increased significantly last week as mortgage rates were lowered on market expectations of a rate cut from the Fed. Thirty-year fixed mortgage rates, at 6.15%, are currently the lowest since September 2022 and more than a percentage point lower than a year ago,” said Joel Kang, MBA associate dean and associate chief economist. “Refinance applications increased 24%, more than double last year, and refinancing of both conventional and government-backed loans jumped to the fastest pace since 2022.”
Kang added, “Purchase applications are also on the rise, and it is noteworthy that traditional purchase applications increased at a faster pace than last year. This has also brought overall purchase applications very close to last year’s levels. Homebuyers are finding that conditions for purchasing homes are improving due to lower interest rates and slower home price growth.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (under $766,550) decreased from 6.29% to 6.15%, and points for loans with an 80% LTV increased from 0.55 (including origination fees) to 0.56.
Add emphasis
Click on the graph to enlarge the image.
The first chart shows the MBA Mortgage Purchase Index.
Purchasing activity was down 0.4% year-over-year on an unadjusted basis, according to the MBA.Almost no change compared to last year!).
Red is the four-week average (blue is weekly).
Purchase application activity is up about 17% from its low 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 after remaining roughly flat for two years, but it has been rising recently as mortgage rates have fallen.
