Mortgage applications increased 3.7 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending January 19, 2024. The results include an adjustment to account
for the MLK holiday.The Market Composite Index, a measure of mortgage loan application volume, increased 3.7 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4
percent compared with the previous week. The holiday adjusted Refinance Index decreased 7 percent
from the previous week and was 8 percent lower than the same week one year ago. The unadjusted
Refinance Index decreased 16 percent from the previous week and was 8 percent lower than the same
week one year ago. The seasonally adjusted Purchase Index increased 8 percent from one week earlier.
The unadjusted Purchase Index increased 3 percent compared with the previous week and was 18
percent lower than the same week one year ago.“Mortgage rates increased slightly last week but, there continues to be an upward trend in purchase
activity. Conventional and FHA purchase applications drove most of the increase last week as some
buyers moved to act early this season,” said Joel Kan, MBA’s Vice President and Deputy Chief
Economist. “Refinance applications declined over the week and remained at low levels. There is still little
incentive for homeowners to refinance with rates at these levels.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($726,200 or less) increased to 6.78 percent from 6.75 percent, with points increasing to 0.63 from 0.62
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is down 18% year-over-year unadjusted.
