by Calculated Risk on 1/22/2025 07:00:00 AM
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 0.1 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending January 17, 2025.The Market Composite Index, a measure of mortgage loan application volume, increased 0.1 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3
percent compared with the previous week. The Refinance Index decreased 3 percent from the previous
week and was 42 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 7 percent
compared with the previous week and was 2 percent higher than the same week one year ago.“Mortgage application volume was little changed last week, but there was a small increase in conventional
purchase volume, which brought the level of total purchase volume up almost 2 percent above last year at
this time,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Mortgage rates remained near 7
percent, a key psychological level, which likely continues to slow the pace of activity for both refinances
and purchases. Incoming economic data are likely to keep the Federal Reserve on hold for now, while
uncertainties about economic policy are likely to keep longer-term rates, including mortgage rates, steady
at these levels.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 7.02 percent from 7.09 percent, with points decreasing to 0.62 from 0.65
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased
from last week.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is up 2% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
Purchase application activity is up about 30% from the lows in late October 2023 and is now 8% above the lowest levels during the housing bust.
The refinance index is very low.
