Mortgage applications reversed course this week, decreasing 2.3% from last week’s increase of 3.7%, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending February 9, 2024.
Here are this week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 2.3% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index increased 2% compared with the previous week.
- The Refinance Index decreased 2% from the previous week and was 12% higher than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 3% from one week earlier.
- The unadjusted Purchase Index increased 4% compared with the previous week and was 12% lower than the same week one year ago.
- The FHA share of total applications increased to 13.4% from 13.1% the week prior.
- The VA share of total applications decreased to 13.1% from 14.1% the week prior.
- The USDA share of total applications remained unchanged at 0.4%.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.87% from 6.80%, with points increasing to 0.65 from 0.59 (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) increased to 7.00% from 6.88%, with points decreasing to 0.39 from 0.47 (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 6.57%, with points increasing to 0.89 from 0.84 (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 6.53% from 6.41%, with points increasing to 0.94 from 0.71 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 5/1 ARMs increased to 6.30% from 6.14%, with points increasing to 0.6 from 0.48 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The refinance share of mortgage activity decreased to 34.2% of total applications from 35.4% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.0% of total applications.
MBA’s take:
“Application activity was weaker last week, as mortgage rates moved higher across the board. The 30-year fixed mortgage rate was up to 6.87%—the highest rate since early December 2023,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications remained subdued as elevated rates continue to add to affordability challenges along with still-low existing housing inventory. Refinance applications declined and remained depressed, with rates still higher than a year ago.”
