by calculated risk 10/09/2024 07:00:00 AM
From MBA: Mortgage applications drop in latest MBA weekly survey
Mortgage applications fell 5.1% from the previous week for the week ending October 4, 2024, according to data from the Mortgage Bankers Association’s (MBA) Weekly Application Survey.
The market composite index, which measures the number of mortgage loan applications, fell by 5.1% from a week ago on a seasonally adjusted basis. On an unadjusted basis, the index decreased by 5% compared to the previous week. The refinance index fell 9% from the previous week and rose 159% from the same week last year. Seasonally adjusted purchasing index decreased by 0.1% from the previous week. The unadjusted purchasing index rose 0.1% from the previous week; 8% increase compared to the same week one year ago.
MBA Senior Vice President and Chief Economist Mike Fratantoni said, “Following strong economic indicators last week, including the September employment report, mortgage rates rose, with the 30-year fixed rate rising to 6.36%. “This is the highest level since August.” “Refinances of conventional loans, which tend to have larger balances than government loans and are more sensitive to certain changes in mortgage rates, fell significantly this week.Purchase applications were little changed over the week and were down from last year. It was 8% above the level.”
Fratantoni added: “As we have previously highlighted, home buying decisions are influenced by many factors, not just the level of mortgage rates. Over the past year, the biggest constraint for many prospective home buyers has been a lack of inventory. With more homes now available in many markets across the country and mortgage rates still low compared to recent history, at least some potential homebuyers are moving forward. Masu.”
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased by 0.62 points by 0.61 points (including origination fees) for 80% loans, from 6.14% to 6.36%. . Loan to Value (LTV).
Emphasis added
Click on the graph to see a larger image.
The first graph shows the MBA Mortgage Purchase Index.
According to M.B.A. Purchasing activity increased by 8% YoY Unadjusted.
Red is the 4-week average (blue is weekly).
Purchase application activity is up about 19% from its low in late October 2023, but is still about 1% below its lowest level during the housing crisis.
Rising mortgage rates have caused the refinance index to rise significantly in recent days as mortgage rates have fallen, but it has declined slightly over the past two weeks as interest rates rise.
