Mortgage applications ticked up this week, increasing 2.8% from last week’s increase of 2.5%, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending November 10, 2023.
This week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, increased 2.8% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index increased 0.4% compared with the previous week.
- The Refinance Index increased 2% from the previous week and was 7% higher than the same week one year ago.
- The seasonally adjusted Purchase Index increased 3% from one week earlier.
- The unadjusted Purchase Index decreased 0.3% compared with the previous week and was 12% lower than the same week one year ago.
- The refinance share of mortgage activity increased to 31.9% of total applications from 31.4% the previous week.
- The adjustable-rate mortgage (ARM) share of activity decreased to 8.8% of total applications.
- The FHA share of total applications decreased to 14.4% from 14.7% the week prior.
- The VA share of total applications increased to 11.2% from 10.5% the week prior.
- The USDA share of total applications remained unchanged at 0.5% from the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) remained unchanged at 7.61%, with points decreasing to 0.67 from 0.69 (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) increased to 7.65% from 7.58%, with points increasing to 0.67 from 0.65 (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 remained unchanged at 7.36%, with points decreasing to 0.85 from 0.91 (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 6.94% from 6.98%, with points increasing to 1.00 from 0.88 (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 6.65% from 6.76%, with points decreasing to 0.72 from 0.80 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Although Treasury rates dipped midweek, mortgage rates were little changed on average through the week. The 30-year fixed mortgage rate remained at 7.61%, about 30 basis points lower than three weeks ago,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Both purchase and refinance applications increased to the highest weekly pace in five weeks but remain at very low levels. Despite the recent downward trend, mortgage rates at current levels are still challenging for many prospective homebuyers and current homeowners.”
