MBA Weekly Survey June 28, 2023: Mortgage Applications Increase Again

Mortgage applications increased 3.0 percent from one week earlier, the Mortgage Bankers Association’s Weekly Mortgage Applications Survey reported for the week ending June 23, 2023.

This week’s results include an adjustment for Juneteenth holiday. Next week this report will be released on Thursday due to the July 4th holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.0 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 8
percent compared with the previous week. The Refinance Index increased 3 percent from the previous
week and was 32 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 3 percent from one week earlier. The unadjusted Purchase Index decreased 8 percent
compared with the previous week and was 21 percent lower than the same week one year ago.

“Mortgage rate changes varied across loan types last week, with the 30-year fixed rate increasing slightly
to 6.75 percent. The spread between the jumbo and conforming rates widened to 16 basis points, the
third week in a row that the jumbo rate was higher than the conforming rate. To put this into perspective,
from May 2022 to May 2023, the jumbo rate averaged around 30 basis points less than the conforming
rate,” said Joel Kan, MBA Vice President and Deputy Chief Economist.

“Purchase applications increased for the third consecutive week to the highest level of activity since early May but remained more than 20 percent lower than year ago levels,” Kan said. “New home sales have been driving purchase activity in recent months as buyers look for options beyond the existing-home market. Existing-home sales continued to be held back by a lack of for-sale inventory as many potential sellers are holding on to their lower-rate mortgages.”

The refinance share of mortgage activity increased to 27.2 percent of total applications from 26.9 percent
the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent of total
applications.

The FHA share of total applications decreased to 12.9 percent from 13.3 percent the week prior. The VA
share of total applications increased to 12.2 percent from 11.9 percent the week prior. The USDA share
of total applications remained unchanged at 0.4 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($726,200 or less) increased to 6.75 percent from 6.73 percent, with points remaining at 0.64 (including
the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last
week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater
than $726,200) increased to 6.91 percent from 6.80 percent, with points increasing to 0.69 from 0.49
(including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.63
percent from 6.74 percent, with points increasing to 1.08 from 1.03 (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 6.23 percent from 6.26
percent, with points decreasing to 0.69 from 0.71 (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 6.28 percent from 6.09 percent, with points
decreasing to 1.02 from 1.40 (including the origination fee) for 80 percent LTV loans. The effective rate
increased 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.