Applications Slip As Rates Rise To 7.07%

Mortgage applications fell for a second consecutive week as rates moved up again. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 5.2%, adding to last week’s 5.7% dip. These results include an adjustment for Memorial Day. Adjusted purchase applications declined by 4%, while the unadjusted index was down 16% and 13% lower YOY. “Mortgage rates moved slightly higher last week, with the 30-year conforming rate reaching 7.07%– its highest level since early May – despite incoming data indicating somewhat slower economic growth,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Government purchase volume was down less, helped by growth in VA applications. The market…

Cooling Rates Boosts Refis Again

Mortgage applications rose again as rates slipped for a third week and refis rallied. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 1.9%, adding to last week’s 0.5% increase. Adjusted purchase applications declined, however, by 1%, while the unadjusted index was down 2% and 11% lower YOY. Refinances once again drove the rising data this week. Rates declined to 7.01%, their lowest level in seven weeks. “Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications. VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is…

Applications Rise On Refi Strength, Purchases Wobble

Mortgage applications ticked up slightly last week, buoyed by a refi boost as purchase applications tanked in the face of 7% rates. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — increased by 0.1%, following the week prior’s 0.6% slip. Adjusted purchase applications fell by 5%, while the unadjusted index was down 4% and 23% lower YOY.  Rates took a turn upward in the face of a surprisingly strong unemployment report and continued inflation stickiness, rising to 7.01%, their highest point in more than a month. “Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts. Inflation remains stubbornly…

Applications Rise, Reversing After A Dip

Mortgage applications shot up last week, reversing a slip, as rates remain stable into February. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3.7%, countering the week prior’s 7.2% dip. Adjusted purchase applications slipped by 1%, while the unadjusted index increased by 6% and was 19% lower YOY. Rates actually rose slightly, clocking in at 6.8%, but have stayed in the mid-6% range since the beginning of 2024. “Mortgage rates have stayed close to where they started the year, despite swings in Treasury yields because of slowing inflation offset by stronger than expected readings on the job market,” said Joel Kan, MBA’s Vice President and…

Purchase Applications Down, Wiping Out Refi Uptick

Purchase applications slipped, breaking a weeks-long upward trend, as rates barely budge and inventory shortages keep prices high. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 7.2%, wiping out the week prior’s 3.7% spike. Adjusted purchase applications slipped by 11%, while the unadjusted index decreased by 6% and was 20% lower YOY. The data includes an adjustment for the MLK holiday. Demand may have been tempered by rates ticking up slightly the week prior and hovering at 6.78%. Rates haven’t moved much in the last month, though they remain well below October 2023’s high of 7.9%. Stock shortages and high home prices are keeping purchase…

Refinances Drive Application Surge As Rates Hit 5-Month Low

Refinance applications drove a spike in mortgage applications last week as rates slipped to nearly 7%. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – saw a 7.4% boost, up from the week prior’s 2.8% increase. Adjusted purchase applications jumped by 4%, while the unadjusted index fell 1% from the week before and was 18% lower YOY. The data highlights borrowers’ rate sensitivity, as the 30-year fixed rate slipped to 7.07%, its lowest point since July. A recent round of positive disinflation data put downward pressure on rates. Analysts feel more optimistic about the possibility of Federal monetary policy changes in 2024. “Borrowers who had seen rates near…

Purchase Demand Sees A Boost, But It Doesn’t Mean The Market Is Improving

Mortgage purchase demand increased last week but that doesn’t signal a change in the mortgage market. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%, balancing out last week’s 5.4% dip. The average interest rate for 30-year fixed loans rose from 6.71% to 6.79%. Rates have jumped by 50 basis points just in the last month, driving applications down. Adjusted purchase applications increased by 7%, while the unadjusted index was up 9% from the week before and was 42% lower YOY. But MBA Vice President and Deputy Chief Economist noted that the bump was the result of purchase applications resettling after sinking in weeks prior,…

Loans Apps Drop, Breaking Upward Trend

The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 9%. Adjusted purchase applications fell by 10%, but the unadjusted index was up 7% from the week before. Purchase applications are down by more than 40% YOY. Refinances dipped as well, down 7% from the week prior.  They remain 80% lower than the same time last year, comprising only 31.2% of total applications. In the past decade, refis averaged 58% of total activity. “Mortgage rates declined for the fourth straight week and have now fallen almost 40 basis points over the past month. Treasury yields were higher on average last week, while mortgage rates decreased, which was…

Loan Apps Rise Again, Buoyed By Refis

Mortgage loan application volume increased again last week, continuing a trend of rising demand as mortgage rates slip. The Mortgage Bankers Association’s weekly survey showed the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 7%. The results included an adjustment for Martin Luther King, Jr. Day. Refinances drove the increase, up 15% from the week prior as mortgage rates fell to 6.2%, their lowest level since September. They remain 77% lower than the same time last year, however, comprising only 31.9% of total applications. In the past decade, refis averaged 58% of total activity. Purchase demand saw a boost as well, though not as drastic. Applications increased at a seasonally adjusted rate of 3%, but…

Loan Apps Tumble Again

Mortgage loan application volume tumbled again, falling by 6.3% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 6.3%. The adjusted purchase index dropped 7%, while the unadjusted purchase index increased by 16% and was 19% lower YOY. The refinance index fell by 4% and made up 31.4% of total applications, down 80% from the same time last year.  ARM activity dropped to 9.5% of total applications.  “Mortgage applications declined for the third week in a row, reaching the lowest level since 2000. Similarly, with most mortgage rates more than two percentage points higher than a year ago, demand for refinances continues to plummet, with…