Weekly survey shows mortgage applications on the rise

by Calculated Risk June 26, 2024 7:00 AM

From the MBA: Latest MBA Weekly Survey Shows Increase in Mortgage Applications

The Mortgage Bankers Association reported that the number of mortgage applications for the week ending June 21, 2024 increased 0.8% from the previous week. This week’s results include an adjustment for the Juneteenth holiday.

The composite market index, a measure of mortgage application volume, increased 0.8% from the previous week on a seasonally adjusted basis. The unadjusted index was down 10% from the previous week. The refinance index was little changed from the previous week and was up 26% from the same week a year ago. The seasonally adjusted purchasing index rose 1% from the previous week.The unadjusted purchasing index fell 10% from the previous week, That’s 13 percent lower than the same week a year ago..

“Mortgage rates fell across the board last week, with 30-year fixed rates dropping slightly to 6.93%, the lowest level in more than three months,” said Joel Kang, MBA vice president and deputy chief economist. “However, the rate declines were not enough to re-attract borrowers to refinance, as most borrowers continue to have mortgages with fairly low interest rates.”

Kang added, “Purchase applications did indeed increase slightly after the Juneteenth adjustment. Government purchase loans, primarily FHA and VA, increased more than 2% from the previous week as homebuyers in these segments sought to take advantage of recent interest rate relief.”

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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (under $766,550) decreased from 6.94% to 6.93%, while the points for 80% LTV loans remained unchanged at 0.61 (including origination fees).
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Click on the graph to enlarge the image.

The first chart shows the MBA Mortgage Purchase Index.

Purchasing activity was down 13% 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 lows seen during the housing bubble collapse.