MBA Weekly Survey June 7, 2023: Applications Decrease
Mortgage applications decreased 1.4 percent from one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending June 2, 2023.
This week’s results include an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.4 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 12
percent compared with the previous week. The Refinance Index decreased 1 percent from the previous
week and was 42 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 13 percent
compared with the previous week and was 27 percent lower than the same week one year ago.
“Mortgage rates declined last week from a recent high, but total application activity slipped for the fourth
straight week. The 30-year fixed rate dipped to 6.81 percent, 10 basis points lower than last week but still
the second highest rate of 2023 to date,” said Joel Kan, MBA Vice President and Deputy Chief
Economist. “Overall applications were more than 30 percent lower than a year ago, as borrowers continue
to grapple with the higher rate environment. Purchase activity is constrained by reduced purchasing
power from higher rates and the ongoing lack of for-sale inventory in the market, while there continues to
be very little rate incentive for refinance borrowers. There was less of a decline in government purchase
applications last week, which was consistent with a growing share of first-time home buyers in the
market.”
The refinance share of mortgage activity increased to 27.3 percent of total applications from 26.7 percent
the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.8
percent of total applications.
The FHA share of total applications increased to 13.2 percent from 12.7 percent the week prior. The VA
share of total applications increased to 12.5 percent from 12.1 percent the week prior. The USDA share
of total applications decreased to 0.4 percent from 0.5 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 6.81 percent from 6.91 percent, with points decreasing to 0.66 from 0.83
(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 6.74 percent from 6.78 percent, with points decreasing to 0.56 from 0.76
(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 6.73
percent from 6.85 percent, with points decreasing to 1.15 from 1.26 (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 6.25 percent from 6.41
percent, with points decreasing to 0.62 from 0.84 (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 5.93 percent from 5.39 percent, with points
increasing to 0.96 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate
increased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, visit
www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.
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.
