Mortgage Applications Decrease in Latest MBA Weekly Survey
(Image courtesy of Cytonn Photography/Pexels.com)
Mortgage applications decreased 10.1% from one week earlier, according to the Mortgage Bankers Association’s Weekly Applications Survey for the week ending Aug. 16, 2024.
The Market Composite Index, a measure of mortgage loan application volume, decreased 10.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11% compared with the previous week. The Refinance Index decreased 15% from the previous week and was 90% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index decreased 7% compared with the previous week and was 8% lower than the same week one year ago.
“Both mortgage rates and mortgage applications have now stabilized after a few weeks of financial
market volatility, which led to a quick drop in mortgage rates. Applications were lower last week, led by a
15% decrease in refinance activity despite the 30-year fixed mortgage rate declining for the third
consecutive week to 6.5%, the lowest since May 2023,” said Joel Kan, MBA’s Vice President and
Deputy Chief Economist. “The level of refinance applications remains 23% higher than a month ago
and the past two weeks have seen the strongest weekly readings since 2022, as borrowers have sought
lower rates. FHA refinance applications bucked the trend and increased for the sixth straight week.”
Added Kan, “Purchase applications also declined last week, reaching the lowest level since February 2024. Home sales have slowed despite rising inventory levels. Even with lower mortgage rates, potential
buyers might be more selective now that there are more options.”
The refinance share of mortgage activity decreased to 46.3% of total applications from 48.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5% of total applications.
The FHA share of total applications increased to 15.6% from 13.5% the week prior. The VA share of total applications decreased to 15.3% from 16.8% the week prior. The USDA share of total applications increased to 0.4% from 0.3% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.50% from 6.54%, with points increasing to 0.60 from 0.57 (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 6.68% from 6.78%, with points increasing to 0.56 from 0.37 (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 6.42% from 6.49%, with points increasing to 0.78 from 0.77 (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 increased to 6.04% from 5.96%, with points increasing to 0.71 from 0.65 (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 6.25% from 6.04%, with points decreasing to 0.57 from 0.87 (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.
