Mortgage Applications Increase for Sixth Consecutive Week

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, December 8th, the Market Composite Index—a measure of mortgage loan application volume—increased 7.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.0% compared with the previous week.

The Refinance Index increased 19.0% from the previous week and was 27.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 4.0% from one week earlier. The unadjusted Purchase Index decreased 1.0% compared with the previous week and was 18.0% lower than the same week one year ago.

Commenting on the results of the Weekly Mortgage Application Survey, MBA SVP and Chief Economist Mike Fratantoni said:

“Mortgage rates dropped last week, as incoming data point to a slowing economy and support a pivot by the Federal Reserve to begin cutting rates next year. The average 30-year fixed mortgage rate declined to 7.07%, the lowest level since July. Borrowers who had seen rates near 8% earlier this fall are now seeing some lenders quote rates below 7%. Refinance volume picked up in response to this drop in rates, with a particularly notable increase for FHA and VA refinance applications. Purchase volume was running about 18% below last year’s pace, as prospective homebuyers are still challenged by a lack of inventory, even as rates have decreased.”