WASHINGTON—Mortgage applications increased 11% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending Sept. 20, 2024.
The Market Composite Index, a measure of mortgage loan application volume, increased 11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 11% compared with the previous week. The Refinance Index increased 20% from the previous week and was 175% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 0.4% compared with the previous week and was 2% higher than the same week one year ago, MBA said.
“Mortgage applications increased to their highest level since July 2022, boosted by a 20% increase in refinance applications after a large increase the prior week. The 30-year fixed rate decreased for the eighth straight week to 6.13%, while the FHA rate decreased to 5.99%, breaking the psychologically important 6% level,” Joel Kan, MBA’s vice president and deputy chief economist. “As a result of lower rates, week-over-week gains for both conventional and government refinance applications increased sharply.
Refi Share At 55.7%
“The refinance share of applications is now at 55.7%, and while the level of refinance activity is still modest compared to prior refi waves, they now account for the majority of applications, given the seasonal slowdown in purchase activity,” continued Kan. “Average loan sizes were higher both for purchase and refinance applications, which pushed the overall average loan size to its highest in the survey’s history at $413,100.”
The refinance share of mortgage activity increased to 55.7% of total applications from 51.2% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.9% of total applications.
The FHA share of total applications decreased to 15.0% from 15.2% the week prior. The VA share of total applications increased to 18.3% from 16.8% the week prior. The USDA share of total applications decreased to 0.3% from 0.4% the week prior, MBA said.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.13% from 6.15%, with points increasing to 0.57 from 0.56 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
Average Contract Interest Rate Up
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 6.47% from 6.41%, with points decreasing to 0.50 from 0.55 (including the origination fee) for 80% LTV loans. The effective rate increased from last week, MBA said.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 5.99% from 6.12%, with points decreasing to 0.79 from 0.81 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.47% from 5.42%, with points decreasing to 0.52 from 0.70 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week, MBA noted.
The average contract interest rate for 5/1 ARMs increased to 5.76% from 5.66%, with points decreasing to 0.44 from 0.49 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.