Mortgage Applications Declined – In the Week Ending 4th October 2024

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending Friday, October 4, 2024, the Market Composite Index, a measure of mortgage loan application volume decreased 5.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 5.0% compared with the previous week.

The Refinance Index decreased 9.0% from the previous week but was 159.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 0.1% compared to one week ago. The unadjusted Purchase Index increased 0.1% compared with the previous week and was 8.0% higher 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 Dr. Mike Fratantoni – Ph.D. – Economics said, “In the wake of stronger economic data last week, including the September jobs report, mortgage rates moved higher, with the 30-year fixed rate rising to 6.36 percent – the highest since August. Conventional loan refinances, which tend to have larger balances than government loans and hence are more responsive for a given change in mortgage rates, fell to a greater extent over the week. Purchase application volume was little changed over the week and was 8 percent above last year’s level.”

Dr. Fratantoni added, “As we have highlighted before, the decision to buy a home is impacted by many factors, not just the level of mortgage rates. The largest constraint for many prospective homebuyers over the past year had been the lack of inventory. Now, there are more homes available in many markets across the country, and with mortgage rates still low compared to recent history, at least some potential homebuyers are moving ahead.”