Mortgage applications saw a minuscule increase of 0.1% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending April 5, 2024.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.2% compared with the previous week.
The Refinance Index increased 10% from the previous week and was 4% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 23% lower than the same week one year ago.
“Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts. Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency. Unexpectedly strong employment data released last week further added to the upward pressure on rates,” said MBA Vice President and Deputy Chief Economist, Joel Kan. “The 30-year fixed rate increased to 7.01%, the highest in over a month. Purchase applications were down almost 5% to the lowest level since the end of February, but refinance applications were up 10%, driven particularly by VA refinance applications.”
The refinance share of mortgage activity increased to 33.3% of total applications from 30.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.9% of total applications.
The FHA share of total applications increased to 12.1% from 11.7% the week prior. The VA share of total applications increased to 14.0% from 12.1% the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.01% from 6.91%, with points remaining at 0.59 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 7.13% from 7.06%, with points decreasing to 0.56 from 0.57 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
