Mortgage application volume has ticked up slightly as adjustable rate mortgage (ARM) interest rates fell. ARM applications increased by 15% from the week before. This puts the ARM share at 9.2% of mortgage applications. That’s the highest seen in nearly a year.
According to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, the Market Composite Index increased 0.6 percent from one week earlier. This is on a seasonally adjusted basis. On an unadjusted basis, the Index increased 1% compared with the previous week
Refinance Index increased 0.3%. It was 9% lower than the same week last year. The Purchase Index increased 1% and was 19% lower than one year ago.
“While most mortgage rates increased last week, rates on ARMs declined, leading to an increase in ARM volume and an increase in overall applications. The level of ARM applications increased by 15 percent over the week, bringing the ARM share up to 9.2 percent of all applications, the highest since November 2022. The yield curve has become less inverted in recent weeks and ARM pricing has certainly improved,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed mortgage rate is at 7.67 percent – the highest level since 2000 and 40 basis points higher than a month ago. Application activity remains depressed and close to multi-decade lows, with purchase applications still almost 20 percent behind last year’s pace. Refinance applications also continue to be limited, and the average loan size has fallen to its lowest level since 2017.”
The refinance share of mortgage activity dipped slightly to 31.6%, down from 31.7%. The ARM share of applications rose to 9.2%. FHA share dropped slightly to 14.4% from 14.5%. VA share of applications grew to 10.2% from 10.1%. USDA share remained steady, at 0.5%.
Average contract interest rates for 80% LTV loans:
- The 30-year conforming fixed increased to 7.67% from 7.53 percent. Points decreased to 0.75 from 0.80.
- The 30-year jumbo fixed increased to 7.70%, up from 7.51%. Points decreased from 0.74 to 0.57.
- The 30-year FHA fixed increased to 7.40% from 7.29%. Points increased to 1.08 from 1.01.
- The 15-year fixed increased to 6.97%. Points increased rising from 1.14 to 1.18.
- Rates for 5/1 ARMs decreased to 6.33%. Points decreased from 1.21 to 0.90.
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