MBA releases its latest figures
Mortgage applications increased by 6.3% last week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 22, 2024.
The seasonally adjusted Market Composite Index, which measures overall mortgage loan application volume, climbed 6.3%. On an unadjusted basis, the index increased 3%. The report noted that purchase activity fueled the growth, with the seasonally adjusted Purchase Index rising 12% and the unadjusted Purchase Index increasing 7%. Year-over-year, the Purchase Index was 52% higher.
“Purchase activity drove overall applications higher last week, as conventional purchase applications picked up pace and mortgage rates declined for the first time in over two months, with the 30-year fixed rate dropping slightly to 6.86%,” said Joel Kan, MBA’s vice president and deputy chief economist.
The report also revealed that the average purchase loan size rose to $439,200, its highest level in nearly a month. The survey highlighted growth in available housing inventory and steady economic conditions as factors keeping buyers engaged.
Refinancing slows, purchase activity surges
Refinance activity slowed, with the Refinance Index down 3% from the prior week, though it remained 119% higher than the same week in 2023. This year’s results, however, were compared to a Thanksgiving holiday week last year. The share of refinance applications dropped to 38.8% of total applications, down from 41% the previous week.
Adjustable-rate mortgages (ARMs) accounted for 6.6% of total applications, up from 6.5% the week before. The shares of FHA and VA applications also decreased slightly, while USDA loan activity rose marginally, the MBA noted.
Interest rates show mixed trends
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.86% from 6.90%, while rates for jumbo loans fell to 6.97% from 7.03%. Rates for FHA-backed 30-year fixed loans also declined to 6.61% from 6.68%.
Interest rates for 15-year fixed-rate mortgages dipped to 6.29% from 6.32%, while the rate for 5/1 ARMs remained steady at 6.34%.
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