As rates jumped back up above 7% last week, mortgage applications decreased 5.7% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 24, 2024.
This week’s data:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 5.7% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 6.3% compared with the previous week.
- The Refinance Index decreased 14% from the previous week and was 12% higher than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 1% from one week earlier.
- The unadjusted Purchase Index decreased 3% compared with the previous week and was 10% lower than the same week one year ago.
- The refinance share of mortgage activity decreased to 31.3% of total applications from 34.0% the previous week.
- The adjustable-rate mortgage (ARM) share of activity decreased to 6.4% of total applications.
- The FHA share of total applications decreased to 12.7% from 12.8% the week prior.
- The VA share of total applications decreased to 12.0% from 13.7% the week prior.
- The USDA share of total applications increased to 0.4% from 0.3% the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.05% from 7.01%, with points increasing to 0.63 from 0.60 (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 7.22% from 7.18%, with points decreasing to 0.43 from 0.44 (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 6.85% from 6.77%, with points increasing to 0.95 from 0.88 (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 6.66% from 6.42%, with points increasing to 0.69 from 0.54 (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 6.64% from 6.48%, with points increasing to 0.77 from 0.55 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
MBA’s take:
“Mortgage rates increased for the first time in four weeks, with the 30-year fixed rate up to 7.05% and all other loan types also seeing increases. The uptick in rates led to a decline in mortgage applications heading into Memorial Day weekend,” said Joel Kan, MBA’s vice president and deputy chief economist. “Both purchase and refinance applications fell, pushing overall activity to the lowest level since early March. Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels.”
