Mortgage applications decreased 5.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Feb. 23, 2024.
This week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 5.6% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 3% compared with the previous week.
- The Refinance Index decreased 7% from the previous week and was 1% lower than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 5% from one week earlier.
- The unadjusted Purchase Index decreased 1% compared with the previous week and was 12% lower than the same week one year ago.
- The refinance share of mortgage activity decreased to 31.2% of total applications from 32.6% the previous week.
- The adjustable-rate mortgage (ARM) share of activity increased to 7.5% of total applications.
- The FHA share of total applications decreased to 13.0% from 13.2% the week prior.
- The VA share of total applications decreased to 11.7% from 12.1% the week prior.
- The USDA share of total applications remained unchanged at 0.5%.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.04% from 7.06%, with points increasing to 0.67 from 0.66 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 7.20% from 7.16%, with points increasing to 0.57 from 0.45 (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 decreased to 6.86% from 6.91%, with points decreasing to 0.99 from 1.03 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages increased to 6.70% from 6.61%, with points decreasing to 0.68 from 0.77 (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 6.33% from 6.37%, with points decreasing to 0.58 from 0.71 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage rates were little changed last week, with the 30-year conforming rate declining slightly to 7.04% but remaining about a quarter%age 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% behind last year’s pace, but our January Builder Application Survey results showed that applications to buy new homes were up 19% 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% sure don’t help.”
