WRE News August 15, 2024
Buyer
Mortgage application activity recorded a healthy upswing in new data from the Mortgage Bankers Association (MBA) covering the week ending Aug. 9.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 16.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was up by an even 15%.
The seasonally adjusted Purchase Index increased 3% from one week earlier while the unadjusted index increased 2% – the latter was also 8% lower than the same week one year ago.
The Refinance Index increased by a vibrant 35% from the previous week and was a whopping 118% higher than the same week one year ago. The refinance share of mortgage activity jumped to 48.6% of total applications from 41.7% one week before.
The adjustable-rate mortgage share of activity increased to 7.3% of total applications. Among the federal programs, the FHA share of total applications inched up to 13.5% from 13.4% the week prior while the VA share of total applications increased to 16.8% from 14.3% and the USDA share of total applications dipped to 0.3% from 0.4%.
“Rates on both 30- and 15-year fixed-rate mortgages decreased for the second consecutive week, and combined with the previous week’s rate moves, spurred another strong week for application activity as borrowers with higher rates took the opportunity to refinance,” said Joel Kan, MBA’s vice president and deputy chief economist. “Overall applications increased almost 17% to the highest level since January 2023, driven by a 35% increase in refinance applications. The refinance index also saw its strongest week since May 2022 and was 117% higher than a year ago, driven by gains in conventional, FHA, and VA applications. Additionally, purchase applications increased by 3%, with small gains seen across the various loan types, indicating that prospective homebuyers are slowly reentering the market.”
Stay up to date on the latest real estate trends.
January 17, 2025
January 1st is a fresh start. When the clock strikes midnight, no matter how many times you continue to mistakenly write 2024 instead of 2025, the new year is upon us.
January 17, 2025
Many people dream of moving abroad, whether it's to experience a different culture, a desire for a slower life, or as am escape from the ever changing political climat… Read more
January 17, 2025
There’s one essential step in the homebuying process you may not know a whole lot about and that’s pre-approval. Here’s a rundown of what it is and why it’s so importa… Read more
January 17, 2025
January 16, 2025
Having too much space sounds like the kind of problem we all wish we had. But in the case of this 17,200-square-foot house in Westlake, Texas, a suburb of Dallas, the … Read more
January 16, 2025
I like to think of myself as a seasoned and sophisticated globetrotter, especially since I’m a travel writer who has been lucky enough to traverse the globe.
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today