U.S. Mortgage Applications Rebound 1.1% in the June 20 Week
Summary
- Purchase applications fall 0.4% w/w while refinancing loan applications recover 3.0% w/w.
- Effective interest rate on 30-year fixed-rate loans rises to 7.06%.
- Average loan size declines to the lowest level since the January 17 week.
Mortgage applications rose 1.1% w/w (18.3% y/y) in the week ending June 20 following a 2.6% decrease in the week ending June 13, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the second w/w rise in three weeks to the index level of 250.8. Applications for loans to purchase a house fell 0.4% (+11.8% y/y) in the June 20 week, the third w/w fall in four weeks, on top of a 3.0% drop in the June 13 week. Applications for loan refinancing rebounded 3.0% (29.1% y/y) in the June 20 week, up for the second week in three, following a 2.1% decline in the previous week.
The effective interest rate on a 30-year fixed-rate loan increased 3bps to 7.06% in the week ending June 20 after dropping to 7.03% in the week ending June 13; 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 eased 2bps to 6.29% in the June 20 week, the lowest since the May 9 week, after declining to 6.31% 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 rose 6bps to 7.05% in the June 20 week after falling to 6.99% 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 5bps to 6.36% in the June 20 week, the highest since the May 23 week, after declining to 6.31% 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 38.4% of total applications in the week ending June 20 from 37.3% in the week ending June 13, registering the fourth straight w/w rise and the highest since the April 11 week; however, that was well below a peak of 55.7% in the September 20 week. Meanwhile, the adjustable-rate mortgage (ARM) share of activity, down for the third week in four, fell to 6.9% in the June 20 week, the lowest since the March 28 week, after declining 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, down for the sixth week in seven, fell 0.5% w/w (+1.1% y/y) to $378,300 in the June 20 week, the lowest level since the January 17 week, after a 0.9% fall to $380,200 in the June 13 week. The average size of a purchase loan, down for the fifth week in six, slid 0.6% (+1.3% y/y) to $436,300 in the June 20 week, the lowest level since the January 17 week, following a 0.7% decrease to $439,000 in the prior week. To the upside, the average size of a loan to refinance a mortgage rebounded 1.2% (5.6% y/y) to $285,100 in the June 20 week, the highest level since the May 16 week, reversing a 0.6% decline to $281,600 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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