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MBA: Mortgage Applications Increased in Weekly Survey


From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending August 25, 2023.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.3 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1
percent compared with the previous week. The Refinance Index increased 3 percent from the previous
week and was 28 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 2 percent from one week earlier. The unadjusted Purchase Index decreased 0.3 percent
compared with the previous week and was 27 percent lower than the same week one year ago.

“Mortgage rates were mostly unchanged last week, with the 30-year fixed rate remaining at 7.31 percent
– the highest since December 2000. Treasury yields peaked early in the week and did move lower by the
end, which may have spurred some activity,” said Joel Kan, MBA’s Vice President and Deputy Chief
Economist. “Mortgage applications for home purchases and refinances increased for the first time in five
weeks but remained at low levels. Purchase applications increased but were still 27 percent lower than a
year ago, as elevated mortgage rates and tight housing inventory continue to weigh on home buying

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($726,200 or less) remained unchanged at 7.31 percent, with points decreasing to 0.73 from 0.78
(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 down 27% year-over-year unadjusted.  

Red is a four-week average (blue is weekly).  Last week was the lowest level since 1995!

The second graph shows the refinance index since 1990.

With higher mortgage rates, the refinance index declined sharply in 2022 – and has mostly flat lined at a low level since then.

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