From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 5.6 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending February 23, 2024.The Market Composite Index, a measure of mortgage loan application volume, decreased 5.6 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3
percent compared with the previous week. The Refinance Index decreased 7 percent from the previous
week and was 1 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 5 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent
compared with the previous week and was 12 percent lower than the same week one year ago.“Mortgage rates were little changed last week, with the 30-year conforming rate declining slightly to 7.04
percent but remaining about a quarter percentage point higher than the start of the year,” said Mike
Fratantoni, MBA’s SVP and Chief Economist. “Higher rates in recent weeks have stalled activity, and last
week it dropped more for those seeking FHA and VA refinances. Purchase activity is running 12 percent
behind last year’s pace, but our January Builder Application Survey results showed that applications to
buy new homes were up 19 percent compared to last year. This disparity continues to highlight how the
lack of existing inventory is the primary constraint to increases in purchase volume. However, mortgage
rates above 7 percent sure don’t help.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 7.04 percent from 7.06 percent, with points increasing to 0.67 from 0.66
(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.
