Mortgage Application Activity Catches An Upswing

WRE News June 13, 2024

Buyer

Mortgage Application Activity Catches An Upswing

Mortgage applications activity recorded a significant upswing for the week ending June 7, according to the Mortgage Bankers Association (MBA).

The Market Composite Index, the MBA’s measure of mortgage loan application volume, shot up by 15.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index soared by 26% compared with the previous week.

The seasonally adjusted Purchase Index increased 9% from one week earlier while the unadjusted was up by 19% – the latter was 12% lower than the same week one year ago.

The Refinance Index spiked by 28% from the previous week and was 28% higher than the same week one year ago. The refinance share of mortgage activity grew to 35.2% of total applications from 31.1% the previous week.

Among the federal programs, the FHA share of total applications decreased to 13.1% from 13.2% the week prior while the VA share of total applications increased to 14.7% from 12.1% and the USDA share of total applications increased to 0.4% from 0.3%.

Mike Fratantoni, MBA’s senior vice president and chief economist, noted, “Multiple data sources are now indicating that home inventory levels, while still historically low, are up significantly from last year at this time. This is good news for many prospective homebuyers who have been frustrated by the lack of homes on the market.”