MBA: Mortgage Applications Increase in Latest Weekly Survey
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Mortgage applications increased 0.8% from one week earlier, according to the Mortgage Bankers Association’s Weekly Applications Survey for the week ending June 21, 2024. This week’s results include an adjustment for the Juneteenth holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 10% compared with the previous week. The Refinance Index was essentially unchanged from the previous week and was 26% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 10% compared with the previous week and was 13% lower than the same week one year ago.
“Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to 6.93%, the lowest level in more than three months,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates.”
Added Kan, “Purchase applications did see a small increase after adjusting for the Juneteenth holiday. Government purchase loans, primarily FHA and VA, saw gains of more than 2% over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief.”
The refinance share of mortgage activity decreased to 35.1% of total applications from 35.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.1% of total applications.
The FHA share of total applications increased to 13.1% from 12.7% the week prior. The VA share of total applications decreased to 13.8% from 14.8% the week prior. The USDA share of total applications remained unchanged at 0.4%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.93% from 6.94%, with points unchanged at 0.61 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 7.04% from 7.12%, with points increasing to 0.6 from 0.48 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.82% from 6.79%, with points increasing to 0.99 from 0.93 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.46% from 6.47%, with points increasing to 0.75 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 6.29% from 6.27%,with points decreasing to 0.5 from 0.96 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.
The survey covers over 75% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
