Mortgage applications increased 14.2 percent from
one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly
Applications Survey for the week ending September 13, 2024. Last week’s results included an
adjustment for the Labor Day holiday.The Market Composite Index, a measure of mortgage loan application volume, increased 14.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 26
percent compared with the previous week. The Refinance Index increased 24 percent from the previous
week and was 127 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 15 percent
compared with the previous week and was 0.4 percent lower than the same week one year ago.“Application activity was up significantly last week, as market expectations of a rate cut from the Fed
pulled mortgage rates lower. The 30-year fixed mortgage rate, at 6.15 percent, is now at its lowest since
September 2022 and is more than a full percentage point lower than a year ago,” said Joel Kan, MBA’s
Vice President and Deputy Chief Economist. “Refinance applications were up 24 percent – more than
double last year’s pace, with both conventional and government activity jumping to the fastest pace of
refinancing since 2022.”Added Kan, “There was also an increase in purchase applications, and it is notable that conventional
purchase applications increased to a pace ahead of last year, which also drove overall purchase
applications very close to year-ago levels. Homebuyers are seeing improving affordability conditions,
sparked by lower rates and slower home-price growth.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.15 percent from 6.29 percent, with points increasing to 0.56 from 0.55
(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 0.4% year-over-year unadjusted (mostly unchanged year-over-year!).