Mortgage Applications Decrease in Latest MBA Weekly Survey
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Mortgage applications decreased 2.6% from one week earlier, according to the Mortgage Bankers Association’s Weekly Applications Survey for the week ending June 28, 2024.
The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 8% compared with the previous week. The Refinance Index decreased 2% from the previous week and was 29% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index increased 7% compared with the previous week and was 12% lower than the same week one year ago.
“Mortgage rates moved higher last week, crossing the 7% mark, even as the latest inflation data
has kept market expectations alive for a rate cut from the Fed later this year,” said Mike Fratantoni, MBA’s
SVP and Chief Economist. “Purchase applications decreased the final full week of June, even as both
new and existing inventories have increased over the past few months. Refinance activity also remains
subdued–although there was a slight increase in applications for conventional refinance loans.”
The refinance share of mortgage activity increased to 35.7% of total applications from 35.1% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0% of total applications.
The FHA share of total applications remained unchanged at 13.1%. The VA share of total applications decreased to 12.9% from 13.8% the week prior. The USDA share of total applications decreased to 0.3% from 0.4% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.03% from 6.93%, with points increasing to 0.62 from 0.61 (including the origination fee) for 80% 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 $766,550) increased to 7.11% from 7.04%, with points decreasing to 0.5 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.90% from 6.82%, with points decreasing to 0.95 from 0.99 (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 increased to 6.56% from 6.46%, with points decreasing to 0.54 from 0.75 (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 6.38% from 6.29%, with points increasing to 0.54 from 0.50 (including the origination fee) for 80% LTV loans. The effective rate increased 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.
