Despite the most recent drop in average mortgage rates, mortgage applications decreased this week, down 2.2% from last week’s 3.9% uptick, according to the latest Weekly Applications Survey from the Mortgage Bankers Association (MBA) for the week ending July 19, 2024.
This week’s data:
- The Market Composite Index, a measure of mortgage loan application volume, decreased 2.2% on a seasonally adjusted basis from one week earlier.
- On an unadjusted basis, the Index decreased 2% compared with the previous week.
- The Refinance Index increased 0.3% from the previous week and was 38% higher than the same week one year ago.
- The seasonally adjusted Purchase Index decreased 4% from one week earlier.
- The unadjusted Purchase Index decreased 4% compared with the previous week and was 15% lower than the same week one year ago.
- The refinance share of mortgage activity increased to 39.7% of total applications from 38.8% the previous week.
- The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.8% of total applications.
- The FHA share of total applications decreased to 13.4% from 13.5% the week prior.
- The VA share of total applications decreased to 14.8% from 15.2% the week prior.
- The USDA share of total applications remained unchanged at 0.4% from the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.82% from 6.87%, with points increasing to 0.59 from 0.57 (including the origination fee) for 80% 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) increased to 7.09% from 7.07%, with points decreasing to 0.54 from 0.57 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.71% from 6.75%, with points increasing to 0.86 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 decreased to 6.21% from 6.49%, with points increasing to 0.51 from 0.50 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs decreased to 6.19% from 6.33%, with points decreasing to 0.52 from 0.58 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
MBA’s take:
“Mortgage rates continued to ease, with the 30-year fixed rate dipping to 6.82%, the lowest level since February 2024,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Refinance applications were up, driven by conventional and FHA application activity, as some borrowers took the opportunity to act. Furthermore, the conventional refi index was at its highest level since September 2022.”
Added Kan, “Purchase applications decreased as ongoing affordability challenges persist with rates at their current levels and with home-price appreciation still strong in many markets.”
