Mortgage applications rose for the third straight week as mortgage rates continue to drop, increasing 0.8% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending June 21, 2024. This week’s results include an adjustment for the Juneteenth holiday.
This week’s data:
- The Market Composite Index, a measure of mortgage loan application volume, increased 0.8 percent on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 10 percent compared with the previous week.
- The Refinance Index was essentially unchanged from the previous week and was 26 percent higher than the same week one year ago.
- The seasonally adjusted Purchase Index increased 1 percent from one week earlier.
- The unadjusted Purchase Index decreased 10 percent compared with the previous week and was 13 percent lower than the same week one year ago.
- The refinance share of mortgage activity decreased to 35.1 percent of total applications from 35.2 percent the previous week.
- The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent of total applications.
- The FHA share of total applications increased to 13.1 percent from 12.7 percent the week prior.
- The VA share of total applications decreased to 13.8 percent from 14.8 percent the week prior.
- The USDA share of total applications remained unchanged at 0.4 percent.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.93 percent from 6.94 percent, with points unchanged at 0.61 (including the origination fee) for 80 percent 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 7.04 percent from 7.12 percent, with points increasing to 0.6 from 0.48 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.82 percent from 6.79 percent, with points increasing to 0.99 from 0.93 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.46 percent from 6.47 percent, with points increasing to 0.75 from 0.60 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
- The average contract interest rate for 5/1 ARMs increased to 6.29 percent from 6.27 percent, with points decreasing to 0.5 from 0.96 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to 6.93 percent, the lowest level in more than three months,” said Joel Kan, MBA’s vice president and deputy chief economist. “Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates.”
Kan added, “Purchase applications did see a small increase after adjusting for the Juneteenth holiday. Government purchase loans, primarily FHA and VA, saw gains of more than 2 percent over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief.”
