Mortgage applications decreased 0.7 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending March 22, 2024.The Market Composite Index, a measure of mortgage loan application volume, decreased 0.7 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.4
percent compared with the previous week. The Refinance Index decreased 2 percent from the previous
week and was 9 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 0.2 percent from one week earlier. The unadjusted Purchase Index increased 0.2
percent compared with the previous week and was 16 percent lower than the same week one year ago.“Mortgage application activity was muted last week despite slightly lower mortgage rates. The 30-year
fixed rate edged lower to 6.93 percent, but that was not enough to stimulate borrower demand,” said Joel
Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications were essentially
unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the
market. Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we
expect that will only take place gradually, as we forecast that rates will move toward 6-percent by the end
of the year. Similarly, with rates remaining elevated, there is very little incentive right now for rate/term
refinances.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.93 percent from 6.97 percent, with points decreasing to 0.60 from 0.64
(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 16% year-over-year unadjusted.
