Mortgage applications decreased 2.7 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending April 19, 2024.The Market Composite Index, a measure of mortgage loan application volume, decreased 2.7 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2
percent compared with the previous week. The Refinance Index decreased 6 percent from the previous
week and was 3 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 1 percent from one week earlier. The unadjusted Purchase Index increased 0.2 percent
compared with the previous week and was 15 percent lower than the same week one year ago.“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 percent, 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 percent,
consistent with the upward trend in rates, as buyers look to reduce their potential monthly payments.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) increased to 7.24 percent from 7.13 percent, with points increasing to 0.66 from 0.65
(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 15% year-over-year unadjusted.