Mortgage Applications Decrease in Latest MBA Weekly Survey
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Mortgage applications decreased 5.2% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Applications Survey for the week ending May 31, 2024. This week’s results include an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 5.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 16% compared with the previous week. The Refinance Index decreased 7% from the previous week and was 5% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 16% compared with the previous week and was 13% lower than the same week one year ago.
“Mortgage rates moved slightly higher last week, with the 30-year conforming rate reaching 7.07%–its highest level since early May–despite incoming data indicating somewhat slower economic growth,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “After adjusting for the Memorial Day holiday, both purchase and refinance application volumes were down, with purchase activity specifically 13% below last year’s level.”
Added Fratantoni, “Government purchase volume was down less, helped by growth in VA applications. The market is relying on first-time homebuyer demand, and many first-time buyers do use government lending programs.”
The refinance share of mortgage activity decreased to 31.1% of total applications from 31.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.7% of total applications.
The FHA share of total applications increased to 13.2% from 12.7% the week prior. The VA share of total applications increased to 12.1% from 12.0% 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 7.07% from 7.05%, with points increasing to 0.65 from 0.63 (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) decreased to 7.21% from 7.22%, with points decreasing to 0.41 from 0.43 (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 increased to 6.87% from 6.85%, with points increasing to 0.96 from 0.95 (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 6.75% from 6.66%, with points decreasing to 0.63 from 0.69 (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 6.37% from 6.6%, with points decreasing to 0.63 from 0.77 (including the origination fee) for 80% 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.
