After a couple of weeks of increases, mortgage applications fell 2.7% from last week’s increase of 3.3%, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending April 19, 2024.
This week’s numbers:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 2.7% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 2% compared with the previous week.
- The Refinance Index decreased 6% from the previous week and was 3% higher than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 1% from one week earlier.
- The unadjusted Purchase Index increased 0.2% compared with the previous week and was 15% lower than the same week one year ago.
- The refinance share of mortgage activity decreased to 30.8% of total applications from 32.1% the previous week.
- The adjustable-rate mortgage (ARM) share of activity increased to 7.6% of total applications.
- The FHA share of total applications increased to 12.8% from 12.3% the week prior.
- The VA share of total applications decreased to 11.7% from 12.4% 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 ($766,550 or less) increased to 7.24% from 7.13%, 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 7.45% from 7.40%, with points increasing to 0.56 from 0.46 (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 7.01% from 6.90%, with points decreasing to 0.94 from 0.99 (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 6.75% from 6.64%, with points remaining unchanged at 0.64 (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 6.64% from 6.52%, with points increasing to 0.87 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
MBA’s take:
“Mortgage rates continued to move higher last week, reaching their highest levels since late 2023 and putting a damper on applications activity. The 30-year fixed rate increased for the third consecutive week to 7.24%, the highest since November 2023,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications declined, as home buyers delayed their purchase decisions due to strained affordability and low supply. The ARM share of applications increased to 7.6%, consistent with the upward trend in rates, as buyers look to reduce their potential monthly payments.”
