by Calculated Risk on 3/19/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 6.2 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending March 14, 2025.The Market Composite Index, a measure of mortgage loan application volume, decreased 6.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6
percent compared with the previous week. The Refinance Index decreased 13 percent from the previous
week and was 70 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 0.1 percent from one week earlier. The unadjusted Purchase Index increased 1 percent
compared with the previous week and was 6 percent higher than the same week one year ago.“Mortgage rates increased for the first time in nine weeks, with the 30-year fixed rate rising to 6.72
percent. This increase in rates led to a decrease in refinance volume. However, purchase application
volume inched up to its highest level in six weeks, led by a 3 percent increase in FHA purchase
applications,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Overall, purchase application
volume is up 6 percent compared to last year at this time. Growing inventories of homes on the market
and steadier mortgage rates are supporting homebuying activity thus far this spring.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.67 percent from 6.73 percent, with points increasing to 0.63 from 0.60
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is up 6% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
Purchase application activity is up about 23% from the lows in late October 2023 and is only 2% above the lowest levels during the housing bust.
The refinance index declined after increasing sharply the previous two weeks and remains very low.
