Weekly survey shows decline in mortgage applications

by Calculated Risk July 3, 2024, 7:00 AM

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

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending June 28, 2024, mortgage applications fell 2.6% from the previous week.

The Market Composite Index, a measure of mortgage application volume, decreased 2.6% from the previous week on a seasonally adjusted basis. The unadjusted index increased 8% from the previous week. The Refinance Index decreased 2% from the previous week and was up 29% compared to the same week a year ago. The seasonally adjusted purchasing index fell 3% from the previous week.The unadjusted purchasing index increased 7% from the previous week. That’s 12 percent lower than the same week a year ago..

“Mortgage rates rose last week, surpassing the 7% mark, but the latest inflation data is keeping market expectations alive that the Fed will cut rates later this year,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Purchase applications declined in the last week of June, even as both new and existing inventory have increased over the past few months. Refinance activity also remains sluggish, although applications for conventional refinance loans increased slightly.”

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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased from 6.93% to 7.03%, and points for loans with an 80% loan-to-value ratio (LTV) increased from 0.61 (including origination fees) to 0.62.
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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 12% 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.