Mortgage Functions Decreased Over a Two-Week Interval in Weekly Survey

by Calculated Danger on 1/02/2025 07:00:00 AM

From the MBA: Mortgage Functions Decreased Over a Two-Week Interval in Newest
MBA Weekly Survey

Mortgage functions decreased 21.9 p.c from two
weeks earlier, in keeping with knowledge from the Mortgage Bankers Affiliation’s (MBA) Weekly Mortgage
Functions Survey for the week ending December 27, 2024. The outcomes embrace an adjustment to
account for the Christmas vacation.

The Market Composite Index, a measure of mortgage mortgage utility quantity, decreased 21.9 p.c
on a seasonally adjusted foundation from two weeks earlier. On an unadjusted foundation, the Index decreased 55
p.c in contrast with two weeks in the past. The vacation adjusted Refinance Index decreased 36 p.c from
two weeks in the past and was 10 p.c greater than the identical week one 12 months in the past. The unadjusted Refinance
Index decreased 62 p.c from two weeks in the past and was 6 p.c decrease than the identical week one 12 months
in the past. The seasonally adjusted Buy Index decreased 13 p.c in contrast with two weeks in the past. The
unadjusted Buy Index decreased 48 p.c in contrast with two weeks in the past and was 17 p.c
decrease than the identical week one 12 months in the past.

“Mortgage charges moved greater via the final full week of 2024, reaching virtually 7 p.c for 30-year
fixed-rate loans,” stated Mike Fratantoni, MBA’s SVP and Chief Economist. “Not surprisingly, this improve
in charges – at a time when housing exercise sometimes grinds to a halt – resulted in declines in each refinance
and buy functions.”
…
The typical contract rate of interest for 30-year fixed-rate mortgages with conforming mortgage balances
($766,550 or much less) elevated to six.97 p.c from 6.89 p.c, with factors growing to 0.72 from 0.67
(together with the origination price) for 80 p.c loan-to-value ratio (LTV) loans. The efficient charge elevated
from final week.
emphasis added

Click on on graph for bigger picture.

The primary graph exhibits the MBA mortgage buy index.

In keeping with the MBA, buy exercise is down 17% year-over-year unadjusted. 

Crimson is a four-week common (blue is weekly).  

Buy utility exercise is up about 9% from the lows in late October 2023 and is now 9% beneath the bottom ranges through the housing bust.