MBA Weekly Survey July 19, 2023: Mortgage Applications Increase

Mortgage applications increased 1.1 percent from one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 14, 2023.

Last week’s results included an adjustment for Independence Day.

The Market Composite Index, a measure of mortgage loan application volume, increased 1.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 27 percent compared with the previous week. The Refinance Index increased 7 percent from the previous week and was 32 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index increased 24 percent compared with the previous week and was 21 percent lower than the same week one year ago.

“Mortgage rates declined last week, as markets responded positively to incoming data showing that U.S.
inflation continues to cool. Most rates in our survey declined, with the 30-year fixed rate falling to 6.87
percent,” said Joel Kan, MBA Vice President and Deputy Chief Economist.

Kan said refinance applications increased more than 7 percent, but noted that activity accounted for only 28 percent of applications and was more than 30 percent behind last year’s pace. “Despite last week’s lower rates, purchase applications decreased, as home purchase activity is still being held back by low housing supply and rates that are still much higher than a year ago,” he said.

The refinance share of mortgage activity increased to 28.4 percent of total applications from 26.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3 percent of total applications.

The FHA share of total applications increased to 13.6 percent from 13.3 percent the week prior. The VA share of total applications decreased to 12.1 percent from 12.6 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.87 percent from 7.07 percent, with points decreasing to 0.66 from 0.74 (including the origination fee) for 80 percent 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 $726,200) decreased to 6.89 percent from 7.04 percent, with points increasing to 0.64 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.77 percent from 6.86 percent, with points decreasing to 1.12 from 1.23 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.36 percent from 6.42 percent, with points decreasing to 0.72 from 1.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.27 percent from 6.24 percent, with points decreasing to 0.91 from 1.42 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

Visit www.mba.org/WeeklyApps or contact mbaresearch@mba.org to purchase a subscription to MBA’s Weekly Applications Survey.

The survey covers over 75 percent 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.