Mortgage applications increased 3.3 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending April 12, 2024.The Market Composite Index, a measure of mortgage loan application volume, increased 3.3 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4
percent compared with the previous week. The Refinance Index increased 0.5 percent from the previous
week and was 11 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 5 percent from one week earlier. The unadjusted Purchase Index increased 6 percent
compared with the previous week and was 10 percent lower than the same week one year ago.“Rates increased for the second consecutive week, driven by incoming data indicating that the economy
remains strong and inflation is proving tougher to bring down. Mortgage rates increased across the board,
with the 30-year fixed rate at 7.13 percent – reaching its highest level since December 2023,” said Joel
Kan, MBA’s Vice President and Deputy Chief Economist. “Despite these higher rates, application activity
picked up, possibly as some borrowers decided to act in case rates continue to rise. Purchase
applications drove most of the increase, but remain at low levels of around 10 percent behind last year’s
pace. Refinance applications increased very slightly, driven by a 3 percent gain in conventional
applications.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) increased to 7.13 percent from 7.01 percent, with points increasing to 0.65 from 0.59
(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 10% year-over-year unadjusted.
