Mortgage applications decreased sharply this week, down 10.6% from last week’s decrease of 2.3%, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association for the week ending Feb. 16, 2024.
Here are this week’s numbers:
- The refinance share of mortgage activity decreased to 32.6% of total applications from 34.0% the previous week.
- The adjustable-rate mortgage (ARM) share of activity increased to 7.4% of total applications.
- The FHA share of total applications decreased to 13.2% from 13.5% the week prior.
- The VA share of total applications decreased to 12.1% from 13.3% 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 ($766,550 or less) increased to 7.06% from 6.87%, with points increasing to 0.66 from 0.65 (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 7.16% from 7.00%, with points increasing to 0.45 from 0.39 (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 6.91% from 6.68%, with points increasing to 1.03 from 0.89 (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 6.61% from 6.53%, with points decreasing to 0.77 from 0.94 (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 6.37% from 6.30%, with points increasing to 0.71 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
What MBA Is Saying:
“Mortgage rates moved back above 7 percent last week following news that inflation picked up in January, dimming hopes of a near term rate cut,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Mortgage applications dropped as a result with a larger decline in refinance applications. Potential homebuyers are quite sensitive to these rate changes, as affordability is strained with both higher rates and higher home values in this supply-constrained market.”
