Mortgage Applications Increase in Latest MBA Weekly Survey

(Image courtesy of Cytonn Photography/Pexels.com)

Mortgage applications increased 5.4% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Dec. 6, 2024.  Last week’s results included an adjustment for the Thanksgiving Holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 5.4% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 50% compared with the previous week. The Refinance Index increased 27% from the previous week and was 42% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index increased 30% compared with the previous week and was 4% higher than the same week one year ago.

“Mortgage rates decreased again for the third consecutive week, with the 30-year fixed rate dipping to 6.67%,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Applications increased 5%, driven by a 27% surge in refinance activity, as borrowers with higher rates acted on the chance to lower their payments. VA refinance applications were up 85% from the previous week, matching some of the larger swings in VA activity reported in recent months.”

Added Kan, “Purchase applications remained relatively strong and have shown annual gains in all but one week over the past three months. In addition to lower rates, purchase activity continues to be supported by sustained housing demand and inventory that continues to grow gradually in many markets.”

The refinance share of mortgage activity increased to 46.8% of total applications from 38.7% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.3% of total applications.

The FHA share of total applications increased to 16.5% from 16% the week prior. The VA share of total applications increased to 16.3% from 13.6% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.67% from 6.69%, with points decreasing to 0.66 from 0.67 (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 6.79% from 6.85%, with points increasing to 0.50 from 0.39 (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 decreased to 6.47% from 6.49%, with points decreasing to 0.91 from 1.00 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.12%, with points increasing to 0.66 from 0.52 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.81% from 6.24%, with points decreasing to 0.40 from 0.58 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week.

Please Note:

MBA Offices will be closed beginning on Wednesday, Dec. 25, 2024 and will reopen on Thursday, Jan. 2, 2025. Due to the office closing and holidays, the results for weeks ending Dec. 20, 2024 and Dec. 27, 2024 will both be released on Thursday, Jan. 2, 2025.

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 U.S. closed-end residential mortgage applications originated through retail and consumer direct channels.  The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.