Mortgage applications increased 7.2 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending June 9, 2023.
The Market Composite Index, a measure of mortgage loan application volume, increased 7.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 18
percent compared with the previous week. The Refinance Index increased 6 percent from the previous
week and was 41 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 8 percent from one week earlier. The unadjusted Purchase Index increased 17 percent
compared with the previous week and was 27 percent lower than the same week one year ago.
“Mortgage rates declined for the second straight week, with the 30-year fixed rate decreasing to 6.77
percent. Mortgage applications were up over the week, but remained well below levels from a year ago,”
said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Rates that are still more than a
percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying
activity in many markets. The average loan size on a purchase loan decreased for the third straight week,
as we continue to see more first-time homebuyer activity in the purchase market.
Added Kan, “Refinance applications accounted for less than a third of all applications and remained more
than 40 percent behind last year’s pace. Elevated rates have reduced the benefit of a rate/term refinance
for many borrowers and continue to discourage cash-out refinances as borrowers are unwilling to give up
their lower rates.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($726,200 or less) decreased to 6.77 percent from 6.81 percent, with points decreasing to 0.65 from 0.66
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is down 27% year-over-year unadjusted.