Following an upward trend after the election, mortgage applications dipped slightly during the week ending Dec. 13, the Mortgage Bankers Association (MBA) reported today.
The update to its weekly Market Composite Index, which measures overall mortgage loan application volume, showed a decline of 0.7% on a seasonally adjusted basis.
Mortgage borrowers had shown renewed vigor in the five weeks following the presidential election. Sequentially and on a seasonally adjusted basis, applications increased by:
- 0.5% the week ending Nov. 8;
- 1.7% the week ending Nov. 15;
- 6.3% the week ending Nov. 22;
- 2.8% the week ending Nov. 29, which included an adjustment for the Thanksgiving holiday; and
- 5.4% the week ending Dec. 6.
On an unadjusted basis, the Market Composite Index:
- Decreased by 2% the week ending Nov. 8;
- Decreased by 1% the week ending Nov. 15;
- Increased by 3% the week ending Nov. 22;
- Decreased by 30% the week ending Nov. 29;
- Increased by 50% the week ending Dec. 6; and
- Decreased by 2% in this latest report for the week ending Dec. 13.
Also in this latest report, the Refinance Index decreased by 3% from the previous week, but was 41% higher than the same week a year ago. The seasonally adjusted Purchase Index increased by 1% from the week before.
“Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks," said MBA Vice President and Deputy Chief Economist, Joel Kan. “Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis.”
The unadjusted Purchase Index decreased by 2% compared with the previous week and was 6% higher than the same week in 2023. Driving the changes was a mix of mortgage rate increases, inventory gains, a rosier outlook on the economy, and more.
“Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market," Kan added. "Refinance applications declined last week, largely driven by VA refinances that were down 17% after two weeks of gains.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less increased slightly after several weeks of declines.
- 6.75% the week ending Dec. 13;
- 6.67% the week ending Dec. 6;
- 6.69% the week ending Nov. 29;
- 6.86% the week ending Nov. 22;
- 6.90% the week ending Nov. 15; and
- 6.86% the week ending Nov. 8.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances of more than $766,550 increased to 6.86% the week ending Dec. 13, from 6.79% the week prior.
In addition, the FHA share of total applications increased to 17.6% the week ending Dec. 13, up from 16.5% the week prior. The VA share of total applications decreased to 15.3% from 16.3% a week earlier.
