While remaining elevated, mortgage rates have been leveling off in recent weeks, evidenced by a slight uptick in home purchase applications for the second week in a row. According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA), mortgage applications increased 1.7% from last week’s 0.5% uptick. The data reflects the week ending November 15, 2024.
“Mortgage rates moved higher for the fourth consecutive week, with the 30-year fixed rate increasing to 6.90%, its highest level since July 2024. However, even with the uptick in rates, overall mortgage applications increased,” said Joel Kan, MBA’s vice president and deputy chief economist. “The pickup in purchase applications was driven by conventional and FHA loans, with FHA purchase applications seeing a 7% increase.”
According to MBA, the Market Composite Index, a measure of mortgage loan application volume, increased 1.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1% compared with the previous week. The Refinance Index increased 2% from the previous week and was 43% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index decreased 3% compared with the previous week and was 1% lower than the same week one year ago, MBA reported.
Kan added, “For-sale inventory has loosened in some markets and some potential buyers have been able to take advantage of increasing supply and lower FHA rates, which were down slightly in comparison to the conforming 30-year fixed rate. Refinance activity rose slightly last week, driven largely by a 10% increase in VA applications.”
More notable data from this week: The refinance share of mortgage activity increased to 41.0% of total applications from 39.9% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.9% of total applications.
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