Mortgage Applications Decline for Second Consecutive Week

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending Friday, April 26, 2024, the Market Composite Index, a measure of mortgage loan application volume decreased 2.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.4% compared with the previous week.

The Refinance Index declined 3.0% from one week ago and was 1.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 2.0% compared with one week ago. The unadjusted Purchase Index decreased 1.0% compared with the previous week and was 14.0% lower than the same week one year ago.

Adding additional clarity and his expert analysis to this week’s Mortgage Application Survey, MBA’s Senior Vice President, and Chief Economist Mike Fratantoni said, “Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer. No doubt, this is a headwind for the housing and mortgage markets, with the 30-year fixed mortgage rate increasing to 7.29 percent last week, the highest level since November 2023. Application volume for both purchase and refinances declined over the week and remain well below last year’s pace. One notable trend is that the ARM share has reached its highest level for the year at 7.8 percent. Prospective homebuyers are looking for ways to improve affordability, and switching to an ARM is one means of doing that, with ARM rates in the mid-6 percent range for loans with an initial fixed period of five years.”