From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 1.3 percent from
one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending September 22, 2023.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.3 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2
percent compared with the previous week. The Refinance Index decreased 1 percent from the previous
week and was 21 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent
compared with the previous week and was 27 percent lower than the same week one year ago.
“Mortgage rates moved to their highest levels in over 20 years as Treasury yields increased late last
week. The 30-year fixed mortgage rate increased to 7.41 percent, the highest rate since December 2000,
and the 30-year fixed jumbo mortgage rate increased to 7.34 percent, the highest rate in the history of the
jumbo rate series dating back to 2011,” said Joel Kan, MBA’s Vice President and Deputy Chief
Economist. “Based on the FOMC’s most recent projections, rates are expected to be higher for longer,
which drove the increase in Treasury yields. Overall applications declined, as both prospective
homebuyers and homeowners continue to feel the impact of these elevated rates. The purchase market,
which is still facing limited for-sale inventory and eroded purchasing power, saw applications down over
the week and 27 percent behind last year’s pace. Refinance activity was down over 20 percent from last
year and accounted for approximately one third of applications, as many homeowners have little incentive
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($726,200 or less) increased to 7.41 percent, the highest level since December 2000, from 7.31 percent,
with points decreasing to 0.71 from 0.72 (including the origination fee) for 80 percent loan-to-value ratio
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is down 27% year-over-year unadjusted.