by Calculated Risk August 14, 2024 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Increase in Mortgage Applications
According to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending August 9, 2024, mortgage applications increased 16.8% from the previous week.
The Market Composite Index, a measure of mortgage application volume, increased 16.8% from the previous week on a seasonally adjusted basis. The unadjusted index increased 15% from the previous week. The Refinance Index increased 35% from the previous week and was 118% higher than the same week a year ago. The seasonally adjusted purchasing index increased 3% from the previous week.The unadjusted purchasing index rose 2% from the previous week. That’s 8 percent lower than the same week a year ago..
“Interest rates for 30-year and 15-year fixed-rate mortgages fell for the second consecutive week, combining with the rate changes from the previous week. It was a week of renewed application activity as borrowers with higher interest rates seized the opportunity to refinance.“Overall applications increased about 17% to the highest level since January 2023, driven by a 35% increase in refinance applications. The refinance index also saw its strongest week since May 2022, rising 117% year-over-year on increased conventional, FHA and VA applications. Additionally, purchase applications increased 3%, with smaller increases across a range of loan types, indicating that prospective homebuyers are gradually returning to the market,” said Joel Kang, MBA associate dean and associate chief economist.
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased from 6.55% to 6.54%, and points for loans with an 80% loan-to-value ratio (LTV) decreased from 0.58 (including origination fees) to 0.57.
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The first chart shows the MBA Mortgage Purchase Index.
Purchasing activity was down 8% year-over-year on an unadjusted basis, according to the MBA.
Red is the four-week average (blue is weekly).
Purchase application activity is up about 10% from its lows in late October 2023 but remains below the lows 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.
