U.S. Mortgage Applications Jump 12.5% in the June 6 Week After Three Straight W/W Declines
Summary
- Purchase applications (+10.3%) and refinancing loan applications (+15.6%) rebound w/w.
- Effective interest rate on 30-year fixed-rate loans edges up to 7.12%.
- Average loan size rebounds.
Mortgage applications gained 12.5% w/w (22.1% y/y) in the week ending June 6 following a 3.9% decline in the week ending May 30, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the first weekly rise since the May 9 week to the index level of 254.6, the highest since the April 11 week. Applications for loans to purchase a house rebounded 10.3% (18.9% y/y) in the June 6 week, the second w/w rise in three weeks, after a 4.4% drop in the May 30 week. Applications for loan refinancing recovered 15.6% (27.5% y/y) in the June 6 week, the first w/w rise since the May 2 week, following a 3.5% decline in the previous week.
The effective interest rate on a 30-year fixed-rate loan edged up to 7.12% in the week ending June 6, the fourth w/w increase in five weeks, after dropping to 7.11% in the week ending May 30; it was up from a low of 6.29% in the September 20 week but down from a peak of 8.12% in the week of October 20, 2023. The rate on 15-year fixed-rate mortgages fell 9bps to 6.33% in the June 6 week, the lowest since the May 16 week, after rising to 6.42% in the previous week; it was up from a low of 5.60% in the September 20 week but down from a high of 7.44% in the week of October 27, 2023. The rate on 30-year jumbo loans inched up to 7.11% in the June 6 week, the first w/w increase in three weeks, after declining to 7.10% in the prior week; it was up from a low of 6.57% in the September 13 week but below a high of 7.99% in the week of October 27, 2023. The rate on a 5-year ARM rose 4bps to 6.34% in the June 6 week, up for the second week in three, after falling to 6.30% in the previous week; it was above a low of 5.84% in the September 13 week but down from a high of 7.31% in the week of October 27, 2023.
The share of applications for refinancing an existing loan rose to 36.7% of total applications in the week ending June 6 from 35.2% in the week ending May 30, registering the third w/w rise in four weeks and the highest since the May 2 week; however, that was down from a peak of 55.7% in the September 20 week. Meanwhile, the adjustable-rate mortgage (ARM) share of activity inched up to 7.2% in the June 6 week, the second w/w increase in three weeks, after falling to 7.1% in the prior week; it was up from a low of 4.7% in the January 3 week but below its recent high of 9.6% in the April 11 week and a high of 10.7% in the week of October 27, 2023.
The average size of a mortgage loan rebounded 0.4% w/w (2.8% y/y) to $383,700 in the June 6 week, the first weekly increase since the May 2 week, after a 1.0% decrease to $382,000 in the May 30 week. The average size of a purchase loan, up for the first week in four, rose 0.8% (3.1% y/y) to $441,900 in the June 6 week, the highest level since the May 16 week, following a 0.6% decline to $438,500 in the prior week. The average size of a loan to refinance a mortgage grew 2.0% (4.5% y/y), the first w/w increase since the May 2 week, to a three-week-high $283,400 in the June 6 week, reversing a 1.4% fall to $277,900 in the previous week.
The Mortgage Bankers Association Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver’s SURVEYS database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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