Mortgage applications increased 1.4 percent from
one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly
Applications Survey for the week ending September 6, 2024. This week’s results include an adjustment
for the Labor Day Holiday.The Market Composite Index, a measure of mortgage loan application volume, increased 1.4 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 10
percent compared with the previous week. The Refinance Index increased 1 percent from the previous
week and was 106 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 2 percent from one week earlier. The unadjusted Purchase Index decreased 10 percent
compared with the previous week and was 3 percent lower than the same week one year ago.“Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate decreasing to 6.29
percent, the lowest rate since February 2023. Treasury yields have been responding to data showing a
picture of cooling inflation, a slowing job market, and the anticipated first rate cut from the Federal
Reserve later this month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “With rates
almost a full percentage point lower than a year ago, refinance applications continue to run much higher
than last year’s pace. However, there is still somewhat limited refinance potential as many borrowers still
have sub-5 percent rates. It is a positive development that there are homeowners who can benefit from a
refinance as rates continues to move lower.”Added Kan, “Purchase applications increased over the week and are edging closer to last year’s levels.
Despite the drop in rates, affordability challenges and other factors such as limited inventory might still be
hindering purchase decisions.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.29 percent from 6.43 percent, with points decreasing to 0.55 from 0.56
(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 3% year-over-year unadjusted.