Mortgage Applications Decrease in Latest MBA Weekly Survey
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Mortgage applications decreased 0.7% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Dec. 13, 2024.
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2% compared with the previous week. The Refinance Index decreased 3% from the previous week and was 41% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 6% higher than the same week one year ago.
“Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks, said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market. Refinance applications declined last week, largely driven by VA refinances that were down 17% after two weeks of gains.”
The refinance share of mortgage activity decreased to 46.7% of total applications from 46.8% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.3% of total applications.
The FHA share of total applications increased to 17.6% from 16.5% the week prior. The VA share of total applications decreased to 15.3% from 16.3% the week prior. The USDA share of total applications increased to 0.5% 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 6.75% from 6.67% , with points remaining unchanged at 0.66 (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 6.86% from 6.79%, with points increasing to 0.61 from 0.50 (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 6.49% from 6.47%, with points decreasing to 0.79 from 0.91 (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 6.15% from 6.12%, with points increasing to 0.71 from 0.66 (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 6.03% from 5.81%, with points increasing to 0.48 from 0.40 (including the origination fee) for 80% LTV loans. The effective rate increased 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.
