Mortgage applications increased 1.1% from one week earlier, continuing the trend of last week’s 0.9% increase, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 14, 2023.
This week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, increased 1.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 27% compared with the previous week.
- The Refinance Index increased 7% from the previous week and was 32% lower than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index increased 24% compared with the previous week, and was 21% lower than the same week one year ago.
- The refinance share of mortgage activity increased to 28.4% of total applications from 26.8% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.
- The FHA share of total applications increased to 13.6% from 13.3% the week prior.
- The VA share of total applications decreased to 12.1% from 12.6% the week prior.
- The USDA share of total applications increased to 0.5% from 0.4% the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.87% from 7.07%, with points decreasing to 0.66 from 0.74 (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 $726,200) decreased to 6.89% from 7.04%, with points increasing to 0.64 from 0.59 (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 6.77% from 6.86%, with points decreasing to 1.12 from 1.23 (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 6.36% from 6.42%, with points decreasing to 0.72 from 1.22 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs increased to 6.27% from 6.24%, with points decreasing to 0.91 from 1.42 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage rates declined last week, as markets responded positively to incoming data showing that U.S. inflation continues to cool. Most rates in our survey declined, with the 30-year fixed-rate falling to 6.87%,” said MBA’s Vice President and Deputy Chief Economist Joel Kan. “Refinance applications increased more than 7%, but that activity accounted for only 28% of applications, and was more than 30% behind last year’s pace. Despite last week’s lower rates, purchase applications decreased, as home purchase activity is still being held back by low housing supply and rates that are still much higher than a year ago.”
