Mortgage applications decreased 4.4% from one week earlier, following last week’s increase of 3%, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 30, 2023.
This week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 4.4% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index increased 6% compared with the previous week.
- The Refinance Index decreased 4% from the previous week and was 30% lower than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 5% from one week earlier.
- The unadjusted Purchase Index increased 6% compared with the previous week and was 22% lower than the same week one year ago.
- The refinance share of mortgage activity increased to 27.4% of total applications from 27.2% the previous week.
- The adjustable-rate mortgage (ARM) share of activity increased to 6.2% of total applications.
- The FHA share of total applications increased to 13% from 12.9% the week prior.
- The VA share of total applications decreased to 11.7% from 12.2% the week prior.
- The USDA share of total applications remained unchanged at 0.4% from the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.85% from 6.75%, with points increasing to 0.65 from 0.64 (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 $726,200) increased to 6.95% from 6.91%, with points decreasing to 0.64 from 0.69 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.68% from 6.63%, with points decreasing to 0.98 from 1.08 (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 6.3% from 6.23%, with points increasing to 0.91 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% from 6.28%, with points increasing to 1.23 from 1.02 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage applications fell to their lowest level in a month last week as rates for most loan types increased. As mortgage-Treasury spreads remained wide, the 30-year fixed-rate increased to 6.85%, the highest rate since the end of May,” said MBA’s Vice President and Deputy Chief Economist Joel Kan. “Purchase applications decreased for the first time in a month, as homebuyers remained sensitive to rate changes. Rates are still over a percentage point higher than a year ago, and housing affordability is still a challenge in many parts of the country. However, the average loan size for a purchase application declined to $423,500—its lowest level since January 2023. This was likely driven by reduced purchase activity in some high-price markets and more activity in some of the lower-price tiers as buyers searched for more affordable options.”
