by Calculated Risk on 7/03/2024 07:00:00 AM
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications decreased 2.6 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey
for the week ending June 28, 2024.The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 8
percent compared with the previous week. The Refinance Index decreased 2 percent from the previous
week and was 29 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 3 percent from one week earlier. The unadjusted Purchase Index increased 7 percent
compared with the previous week and was 12 percent lower than the same week one year ago.“Mortgage rates moved higher last week, crossing the 7 percent mark, even as the latest inflation data
has kept market expectations alive for a rate cut from the Fed later this year,” said Mike Fratantoni, MBA’s
SVP and Chief Economist. “Purchase applications decreased the final full week of June, even as both
new and existing inventories have increased over the past few months. Refinance activity also remains
subdued – although there was a slight increase in applications for conventional refinance loans.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) increased to 7.03 percent from 6.93 percent, with points increasing to 0.62 from 0.61
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is down 12% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
Purchase application activity is up slightly from the lows in late October 2023, but still below the lowest levels during the housing bust.
With higher mortgage rates, the refinance index declined sharply in 2022, and mostly flat lined since then with a slight increase recently.
