[ad_1]
by Calculated Risk on 8/14/2024 07:00:00 AM
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 16.8 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications
Survey for the week ending August 9, 2024.The Market Composite Index, a measure of mortgage loan application volume, increased 16.8 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 15
percent compared with the previous week. The Refinance Index increased 35 percent from the previous
week and was 118 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 2 percent
compared with the previous week and was 8 percent lower than the same week one year ago.“Rates on both 30- and 15-year fixed rate mortgages decreased for the second consecutive week, and
combined with the previous week’s rate moves, spurred another strong week for application activity as
borrowers with higher rates took the opportunity to refinance,” said Joel Kan, MBA’s Vice President and
Deputy Chief Economist. “Overall applications increased almost 17 percent to the highest level since
January 2023, driven by a 35 percent increase in refinance applications. The refinance index also saw its
strongest week since May 2022 and was 117 percent higher than a year ago, driven by gains in
conventional, FHA, and VA applications. Additionally, purchase applications increased by 3 percent, with
small gains seen across the various loan types, indicating that prospective homebuyers are slowly
reentering the market.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.54 percent from 6.55 percent, with points decreasing to 0.57 from 0.58
(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 8% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
Purchase application activity is up about 10% 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 for two years – but has increased recently as mortgage rates declined.
[ad_2]