Mortgage Applications Increase in the Week Ending May 3rd

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, May 3rd, the Market Composite Index—a measure of mortgage loan application volume—increased 2.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3.0% compared with the previous week.

The Refinance Index increased 5.0% from one week ago but was 6.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 2.0% compared with one week ago. The unadjusted Purchase Index increased 2.0% compared with the previous week but was 17.0% lower than the same week one year ago.

Adding background and analysis to this week’s survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said,

“Treasury rates and mortgage rates fell last week on the news of a slowing job market, with wage growth at the slowest pace since 2021, and the Federal Reserve’s announced plans to ease quantitative tightening in June and to maintain its view that another rate hike is unlikely. The conventional 30-year rate dropped 11 basis points, and the FHA rate fell 17 basis points to 6.92%, back below 7% for the first time in three weeks. Mortgage applications increased for the first time in three weeks, with refinances up 5%. Even with the increase, which included a 29% jump in VA refinances, refinance volume remains about 6% below last year’s already low levels.

Driven by a 5% gain in FHA applications, purchase activity was up 2%. First-time homebuyers account for roughly half of purchase loans, and the government lending programs are an important source of financing for these homebuyers. The gain in FHA activity is a sign that this segment of the market is active.”