Mortgage Applications Increase in Latest MBA Weekly Survey
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Mortgage applications increased 0.9% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Applications Survey for the week ending June 14, 2024.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.1% compared with the previous week. The Refinance Index decreased 0.4% from the previous week and was 30% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index decreased 0.1% compared with the previous week and was 12% lower than the same week one year ago.
“Mortgage rates dropped last week following the latest inflation data and the FOMC meeting, with the 30-year conforming rate dropping to 6.94% and reaching its lowest level since the end of March,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Purchase applications increased a small amount for the week, led by applications for conventional loans. Refinance application volume was also down slightly for the week but remains about 30% higher than this time last year.”
Added Fratantoni, “Purchase volume is still more than 10% behind last year’s pace, but MBA is forecasting a pickup in home sales for the remainder of the year as more inventory is hitting the market.”
The refinance share of mortgage activity remained unchanged at 35.2% of total applications. The adjustable-rate mortgage (ARM) share of activity decreased to 6% of total applications.
The FHA share of total applications decreased to 12.7% from 13.1% the week prior. The VA share of total applications increased to 14.8% from 14.7% the week prior. The USDA share of total applications remained unchanged 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) decreased to 6.94% from 7.02% , with points decreasing to 0.61 from 0.65 (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 7.12% from 7.18% , with points decreasing to 0.48 from 0.54 (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 6.79% from 6.87%, with points increasing to 0.93 from 0.92 (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 decreased to 6.47% from 6.6%, with points increasing to 0.60 from 0.55 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 6.27% from 6.45%, with points increasing to 0.96 from 0.81 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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.
