Mortgage Applications Decrease in Latest MBA Weekly Survey

WASHINGTON, D.C. (August 14, 2024) - Mortgage applications decreased 10.1 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Applications Survey for the week ending August 16, 2024.

The Market Composite Index, a measure of mortgage loan application volume, decreased 10.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11 percent compared with the previous week. The Refinance Index decreased 15 percent from the previous week and was 90 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 8 percent lower than the same week one year ago.

"Both mortgage rates and mortgage applications have now stabilized after a few weeks of financial market volatility, which led to a quick drop in mortgage rates. Applications were lower last week, led by a 15 percent decrease in refinance activity despite the 30-year fixed mortgage rate declining for the third consecutive week to 6.5 percent, the lowest since May 2023," said Joel Kan, MBA's Vice President and Deputy Chief Economist. "The level of refinance applications remains 23 percent higher than a month ago and the past two weeks have seen the strongest weekly readings since 2022, as borrowers have sought lower rates. FHA refinance applications bucked the trend and increased for the sixth straight week."

Added Kan, "Purchase applications also declined last week, reaching the lowest level since February 2024. Home sales have slowed despite rising inventory levels. Even with lower mortgage rates, potential buyers might be more selective now that there are more options."

The refinance share of mortgage activity decreased to 46.3 percent of total applications from 48.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5 percent of total applications.

The FHA share of total applications increased to 15.6 percent from 13.5 percent the week prior. The VA share of total applications decreased to 15.3 percent from 16.8 percent the week prior. The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.50 percent from 6.54 percent, with points increasing to 0.60 from 0.57 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 6.68 percent from 6.78 percent, with points increasing to 0.56 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.42 percent from 6.49 percent, with points increasing to 0.78 from 0.77 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.04 percent from 5.96 percent, with points increasing to 0.71 from 0.65 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.25 percent from 6.04 percent, with points decreasing to 0.57 from 0.87 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

If you would like to purchase a subscription of MBA's Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact [email protected]or click here.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.