Mortgage applications increased 5.4% from one week earlier, after a decrease of 0.8% and a 27-year low the week before, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending September 15, 2023. Last week’s results included an adjustment for the Labor Day holiday.
Here are this week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, increased 5.4% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index increased 16% compared with the previous week.
- The Refinance Index increased 13% from the previous week and was 29% lower than the same week one year ago.
- The seasonally adjusted Purchase Index increased 2% from one week earlier.
- The unadjusted Purchase Index increased 12% compared with the previous week and was 26% lower than the same week one year ago.
- The refinance share of mortgage activity increased to 31.6% of total applications from 29.1% the previous week.
- The adjustable-rate mortgage (ARM) share of activity decreased to 7.2% of total applications.
- The FHA share of total applications remained unchanged from 14.2% the week prior.
- The VA share of total applications decreased to 11.0% from 11.3% the week prior.
- The USDA share of total applications remained unchanged 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) increased to 7.31% from 7.27%, with points remaining unchanged from 0.72 (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 $726,200) increased to 7.32% from 7.25%, with points increasing to 0.80 from 0.72 (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 7.08% from 7.04%, with points decreasing to 0.92 from 0.98 (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 decreased to 6.62% from 6.72%, with points increasing to 1.08 from 1.01 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs decreased to 6.42% from 6.59%, with points decreasing to 1.10 from 1.16 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage applications increased last week, despite the 30-year fixed mortgage rate edging back up to 7.31%–its highest level in four weeks,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications increased for conventional and FHA loans over the week but remained 26% lower than the same week a year ago, as homebuyers continue to face higher rates and limited for-sale inventory, which have made purchase conditions more challenging. Refinance applications also increased last week but are still almost 30% lower than the same week last year.”
Added Kan, “The average loan size on a purchase application was $416,800, the highest level in six weeks. Home prices in many markets have been supported by low inventory and resilient housing demand for available homes.”
