Mortgage applications increased 2.6 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending May 3, 2024.The Market Composite Index, a measure of mortgage loan application volume, increased 2.6 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3
percent compared with the previous week. The Refinance Index increased 5 percent from the previous
week and was 6 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 2 percent
compared with the previous week and was 17 percent lower than the same week one year ago.“Treasury rates and mortgage rates fell last week on the news of a slowing job market, with wage growth
at the slowest pace since 2021, and the Federal Reserve’s announced plans to ease quantitative
tightening in June and to maintain its view that another rate hike is unlikely. The conventional 30-year rate
dropped 11 basis points, and the FHA rate fell 17 basis points to 6.92 percent, back below 7% for the first
time in three weeks,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Mortgage
applications increased for the first time in three weeks, with refinances up 5 percent. Even with the
increase, which included a 29 percent jump in VA refinances, refinance application volume remains about
6 percent below last year’s already low levels.”Added Kan, “Driven by a 5 percent gain in FHA applications, purchase activity was up 2 percent. First-time homebuyers account for roughly half of purchase loans, and the government lending programs are an important source of financing for these homebuyers. The gain in FHA activity is a sign that this segment of the market is active.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 7.18 percent from 7.29 percent, with points unchanged at 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 17% year-over-year unadjusted.
