Mortgage applications fall in latest weekly MBA survey

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Mortgage applications fell 0.7% from a week earlier, according to data from the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending December 13, 2024.

The Market Composite Index, a measure of mortgage applications, fell 0.7% on a seasonally adjusted basis from a week earlier. On an unadjusted basis, the index fell 2% compared to the previous week. The refinancing index fell 3% from the previous week and was 41% higher than the same week a year ago. The seasonally adjusted purchasing index rose 1% from a week earlier. The unadjusted purchase index fell 2% from the previous week and was 6% higher than the same week a year ago.

“Mortgage rates rose last week, leading overall loan application activity to decline for the first time in five weeks,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive view of the economy and the labor market. Refinancing applications fell last week, driven mainly by VA- refinances, down 17% after two weeks of gains.”

The refinancing share of mortgage lending activity fell to 46.7% of total applications from 46.8% the previous week. The share of adjustable-rate mortgage (ARM) activity remained unchanged at 5.3% of total applications.

The FHA share of total filings rose to 17.6% from 16.5% the previous week. The VA share of total filings fell to 15.3% from 16.3% the week before. The USDA share of total applications rose to 0.5% from 0.4% the previous week.

The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) rose to 6.75% from 6.67%, with points unchanged at 0.66 (including the origination fee) for 80% loan-to-value ratio (LTV) loan. The effective interest rate increased compared to last week.

The average contract rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 6.86% from 6.79%, with points increasing to 0.61 from 0.50 (including origination fee) for 80% LTV loans. The effective interest rate increased compared to last week.

The average contract rate for 30-year fixed-rate mortgages backed by the FHA rose to 6.49% from 6.47%, with points falling to 0.79 from 0.91 (including the origination fee) for 80% LTV loans. The effective interest rate fell from last week.

The average contract rate for 15-year fixed rate mortgages rose to 6.15% from 6.12%, with points increasing to 0.71 from 0.66 (including the origination fee) for 80% LTV loans. The effective interest rate increased compared to last week.

The average contract rate for 5/1 ARMs increased to 6.03% from 5.81%, with points increasing to 0.48 from 0.40 (including the origination fee) for 80% LTV loans. The effective interest rate increased compared to last week.

Please note:

MBA offices will be closed from Wednesday 25 December 2024 and will reopen on Thursday 2 January 2025. Due to office closures and public holidays, results for weeks ending 20 December 2024 and 27 December 2024 will both be released on Thursday 2 January 2025.

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

The study covers US closed mortgage applications originating from retail and consumer channels. The survey has been conducted weekly since 1990. Respondents include mortgage lenders, commercial banks, thrifts and credit unions. Base period and value for all indices is 16 March 1990=100.