by calculated risk October 23, 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 18, 2024, the number of mortgage applications decreased by 6.7% from the previous week.
The market composite index, which measures the number of mortgage loan applications, fell by 6.7% from a week ago, seasonally adjusted. On an unadjusted basis, the index was down 7% compared to the previous week. The refinance index was down 8% from the previous week and up 90% from the same week last year. The seasonally adjusted purchasing index was down 5% compared to a week ago. The unadjusted purchasing index decreased by 5% compared to the previous week; 3% increase compared to the same week one year ago.
“Mortgage rates had mixed results last week, but the 30-year fixed rate was unchanged at 6.52%,” said Joel Kang, MBA vice president and deputy chief economist.Both purchase applications and refinance applications are down. As a result, application activity has fallen to its lowest level since July. “Purchase applications continue to outpace last year’s pace for the fifth consecutive week, even though interest rates have trended higher recently. , interest rates are more than 1 percentage point lower than they were a year ago, some home buyers are staying in the market, inventory for sale is starting to decline, and home price growth has also slowed in some markets. This, combined with these lower interest rates, provides more choice for buyers.”
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) remains unchanged at 6.52%, and the point for an 80% loan-to-value ratio increases from 0.65 (including origination fees) to 0.64. decreased. (LTV) Loan. The effective interest rate remains unchanged from the previous week.
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 3% YoY Unadjusted.
Red is the 4-week average (blue is weekly).
Purchase application activity is up about 5% from its low in late October 2023, but is still about 13% 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 four weeks as interest rates rise.
