by Calculated Risk June 5, 2024, 7:00 AM
From the MBA: Latest MBA Weekly Survey Shows Fall in Mortgage Applications
The Mortgage Bankers Association (MBA) reported that mortgage applications for the week ending May 31, 2024, fell 5.2% from the previous week, in a weekly report. This week’s results include an adjustment for Memorial Day.
The Market Composite Index, a measure of mortgage application volume, fell 5.2% from the previous week on a seasonally adjusted basis. The unadjusted index was down 16% from the previous week. The Refinance Index was down 7% from the previous week and up 5% from the same week a year ago. The seasonally adjusted purchasing index fell 4% from the previous week. The unadjusted purchasing index was down 16% compared to the previous week. That’s down 13 percent compared to the same week a year ago.
“Mortgage rates rose slightly last week, with the 30-year conforming rate reaching 7.07%, the highest level since early May, despite incoming data indicating economic growth is slowing slightly,” said Mike Fratantoni, MBA’s SVP and chief economist. “Excluding the Memorial Day holiday, both purchase and refinance applications were down, with purchase activity notably remaining 13% below last year’s levels.”
“Government purchases have not declined significantly, buoyed by an increase in VA claims. The market is dependent on demand from first-time homebuyers, and many first-time homebuyers are taking advantage of government lending programs,” Fratantoni added.
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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 7.05% to 7.07%, and points for 80% loan-to-value (LTV) loans increased from 0.63 (including origination fees) to 0.65.
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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 is up slightly from lows in late October 2023 and remains below the lowest levels seen during the housing bubble collapse.
Rising mortgage rates caused the refinance index to fall sharply in 2022 before remaining roughly flat since then and recently increasing slightly.
