by calculated risk October 16, 2024 07:00:00 AM
From MBA: Mortgage applications drop in latest MBA weekly survey
According to data from the Mortgage Bankers Association’s (MBA) Weekly Application Survey for the week ending October 11, 2024, the number of mortgage applications decreased by 17.0% from the previous week.
The market composite index, which shows the number of mortgage loan applications, decreased by 17.0% compared to a week ago, seasonally adjusted. On an unadjusted basis, the index was down 17% compared to the previous week. The refinance index fell 26% from the previous week and rose 111% compared to the same week last year. The seasonally adjusted purchasing index was down 7% from a week ago. The unadjusted purchasing index decreased by 7% compared to the previous week; 7 percent increase compared to the same week a year ago.
“Mortgage rates rose for the third straight week, with the 30-year fixed rate rising to 6.52%, the highest level since August,” said Joel Kang, MBA Vice President and Principal Deputy Economist. Ta. “Recent interest rate increases have suppressed applications. Refinance applications fell 26%, the lowest level since August, with similar declines for both conventional and government refinances. , the share of refinancing applications fell below 50% for the first time in a month.Furthermore, purchase applications also fell, although they remain 7% higher than they were a year ago.
Mr. Kang added: Despite the higher interest rates, FHA purchase applications remained largely unchanged as improved housing inventory kept some first-time home buyers in the market. ”
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The average contract interest rate for a 30-year fixed-rate mortgage with a conforming loan balance ($766,550 or less) increases from 0.62 points to 0.65 points (including origination fees) and from 6.36% to 6.52% for 80% loans. rose. 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 7% YoY Unadjusted.
Red is the 4-week average (blue is weekly).
Purchase application activity is up about 10% from its low in late October 2023, but remains about 8% below its lowest level during the housing crisis.
Due to rising mortgage rates, the refinance index rose significantly last month as mortgage rates fell, but has declined over the past three weeks as interest rates rise.
