Mortgage applications increased 5.4 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending December 6, 2024. Last week’s results included an adjustment
for the Thanksgiving Holiday.The Market Composite Index, a measure of mortgage loan application volume, increased 5.4 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 50
percent compared with the previous week. The Refinance Index increased 27 percent from the previous
week and was 42 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 4 percent from one week earlier. The unadjusted Purchase Index increased 30 percent
compared with the previous week and was 4 percent higher than the same week one year ago.“Mortgage rates decreased again for the third consecutive week, with the 30-year fixed rate dipping to
6.67 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Applications increased
5 percent, driven by a 27-percent surge in refinance activity, as borrowers with higher rates acted on the
chance to lower their payments. VA refinance applications were up 85 percent from the previous week,
matching some of the larger swings in VA activity reported in recent months.”Added Kan, “Purchase applications remained relatively strong and have shown annual gains in all but one
week over the past three months. In addition to lower rates, purchase activity continues to be supported
by sustained housing demand and inventory that continues to grow gradually in many markets.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.67 percent from 6.69 percent, with points decreasing to 0.66 from 0.67
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased
from last week.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is up 4% year-over-year unadjusted.
