Mortgage applications decreased 17.0 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications
Survey for the week ending October 11, 2024.The Market Composite Index, a measure of mortgage loan application volume, decreased 17.0 percent
on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 17
percent compared with the previous week. The Refinance Index decreased 26 percent from the previous
week and was 111 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 7 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent
compared with the previous week and was 7 percent higher than the same week one year ago.“Mortgage rates moved higher for the third consecutive week, with the 30-year fixed rate increasing to
6.52 percent, its highest level since August,” said Joel Kan, MBA’s Vice President and Deputy Chief
Economist. “The recent uptick in rates has put a damper on applications. Refinance applications fell 26
percent to their lowest level since August, with comparable drops in both conventional and government
refinances. This pushed the refinance share of applications back below 50 percent for the first time in
over a month. Furthermore, purchase applications also decreased but notably remain 7 percent higher
than a year ago.”Added Kan, “Demand is holding up to an extent for prospective first-time buyers. FHA purchase
applications were little changed despite the increase in rates, as some first-time homebuyers remain in
the market because of improving housing inventory conditions.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) increased to 6.52 percent from 6.36 percent, with points increasing to 0.65 from 0.62
(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 up 7% year-over-year unadjusted.
