Mortgage Purposes Elevated in Weekly Survey

by Calculated Threat on 11/13/2024 07:00:00 AM

From the MBA: Mortgage Purposes Improve in Newest MBA Weekly Survey

Mortgage functions elevated 0.5 p.c from one
week earlier, in keeping with knowledge from the Mortgage Bankers Affiliation’s (MBA) Weekly Mortgage
Purposes Survey for the week ending November 8, 2024.

The Market Composite Index, a measure of mortgage mortgage utility quantity, elevated 0.5 p.c on
a seasonally adjusted foundation from one week earlier. On an unadjusted foundation, the Index decreased 2
p.c in contrast with the earlier week. The Refinance Index decreased 2 p.c from the earlier
week and was 43 p.c greater than the identical week one 12 months in the past. The seasonally adjusted Buy
Index elevated 2 p.c from one week earlier. The unadjusted Buy Index decreased 2 p.c
in contrast with the earlier week and was 1 p.c greater than the identical week one 12 months in the past.

“Mortgage charges continued to extend final week, pushed by greater Treasury yields as monetary markets
digested the doubtless impacts of a Trump presidency. The Federal Reserve’s 25-basis-point price minimize was
already anticipated and did little to maneuver the markets,” mentioned Joel Kan, MBA’s Vice President and Deputy
Chief Economist. “The 30-year mounted price was at 6.86 p.c final week, its highest since July 2024.
Nevertheless, regardless of the rise in charges, functions elevated for the primary time in seven weeks.”

Added Kan, “Buy functions picked up and remained near ranges from a 12 months in the past. FHA and VA
buy functions drove the stronger total buy exercise, rising 3 p.c and 9 p.c,
respectively. FHA mortgage charges bucked the general pattern and have been decrease over the week, which doubtless
helped some debtors. Typical buy functions have been additionally up barely. In the meantime, the
upward climb in charges led to refinance exercise falling to its lowest degree since Might 2024.”
…
The common contract rate of interest for 30-year fixed-rate mortgages with conforming mortgage balances
($766,550 or much less) elevated to six.86 p.c from 6.81 p.c, with factors reducing to 0.60 from 0.68
(together with the origination charge) for 80 p.c loan-to-value ratio (LTV) loans.
emphasis added

Click on on graph for bigger picture.

The primary graph exhibits the MBA mortgage buy index.

In accordance with the MBA, buy exercise is up 1% year-over-year unadjusted. 

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

Buy utility exercise is up about 6% from the lows in late October 2023, however nonetheless about 12% beneath the bottom ranges through the housing bust.