Mortgage Applications Increased According to the Latest MBA Weekly Survey

Last Updated on January 29, 2024 by Robert C. Hoopes

Title: Mortgage Applications Rise, Reflecting Growing Housing Demand

Word Count: 345

In a positive sign for the real estate market, data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey showed a 3.7 percent increase in mortgage applications from the previous week. The Market Composite Index, which measures mortgage loan application volume, also saw a corresponding 3.7 percent rise on a seasonally adjusted basis.

While the holiday-adjusted Refinance Index experienced a slight decline of 7 percent from the previous week, the seasonally adjusted Purchase Index surged by 8 percent, indicating a stronger demand for home purchases. Joel Kan, the MBA’s Vice President and Deputy Chief Economist, pointed out that although mortgage rates saw a slight increase, the upward trend in purchase activity was a promising sign for the housing market.

Further analysis of the data revealed that the refinance share of mortgage activity dropped to 32.7 percent of total applications. On the other hand, the ARM (Adjustable-Rate Mortgage) share of activity increased to 6.3 percent, reflecting a growing interest in these mortgage products.

Notably, there was an uptick in average contract interest rates for various mortgage types. The average rate for 30-year fixed-rate mortgages reached 6.78 percent for loans with conforming loan balances, while jumbo loan balances experienced an average rate of 6.94 percent. Homebuyers seeking FHA-backed loans faced an average contract interest rate of 6.51 percent for 30-year fixed-rate mortgages. Meanwhile, 15-year fixed-rate mortgages carried an average interest rate of 6.31 percent, and the average contract interest rate for 5/1 ARMs rose to 6.22 percent.

Overall, the increase in mortgage applications indicates a positive outlook for the housing market, driven by the strong demand for home purchases. Economists remain cautiously optimistic, as mortgage rates experienced a slight upward incline, which may impact affordability for potential buyers in the near future.

As the real estate sector continues to adapt to changing market conditions, experts suggest staying informed and consulting professional advice to make well-informed decisions when entering the housing market.

Disclaimer: The information provided in this article is a summary based on the available content and should not be considered as financial or investment advice. It is always recommended to seek professional assistance before making any financial decisions.