Mortgage applications continued their upward trend and increased 0.9% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending June 14, 2024.
This week’s data:
- The Market Composite Index, a measure of mortgage loan application volume, increased 0.9% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 0.1% compared with the previous week.
- The Refinance Index decreased 0.4% from the previous week and was 30% higher than the same week one year ago.
- The seasonally adjusted Purchase Index increased 2% from one week earlier.
- The unadjusted Purchase Index decreased 0.1% compared with the previous week and was 12% lower than the same week one year ago.
- The refinance share of mortgage activity remained unchanged at 35.2% of total applications.
- The adjustable-rate mortgage (ARM) share of activity decreased to 6.0% of total applications.
- The FHA share of total applications decreased to 12.7% from 13.1% the week prior.
- The VA share of total applications increased to 14.8% from 14.7% the week prior.
- The USDA share of total applications remained unchanged from 0.4% the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.94% from 7.02%, with points decreasing to 0.61 from 0.65 (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) decreased to 7.12% from 7.18%, with points decreasing to 0.48 from 0.54 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.79% from 6.87%, with points increasing to 0.93 from 0.92 (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 decreased to 6.47% from 6.60%, with points increasing to 0.60 from 0.55 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs decreased to 6.27% from 6.45%, with points increasing to 0.96 from 0.81 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage rates dropped last week following the latest inflation data and the FOMC meeting, with the 30-year conforming rate dropping to 6.94% and reaching its lowest level since the end of March,” said Mike Fratantoni, MBA’s SVP and chief economist. “Purchase applications increased a small amount for the week, led by applications for conventional loans. Refinance application volume was also down slightly for the week but remains about 30% higher than this time last year.”
Fratantoni added, “Purchase volume is still more than 10% behind last year’s pace, but MBA is forecasting a pickup in home sales for the remainder of the year as more inventory is hitting the market.”
