A report from the Mortgage Bankers Association today shows that US mortgage applications for home purchases increased last week to their highest point since early 2023, despite high borrowing costs.
According to the data released today, the Mortgage Bankers Association’s index of home-purchase applications increased by 7.6% to 181.6 in the week ending Nov. 21. The contract rate on a 30-year fixed mortgage rose to a more than one-month high of 6.4%.
Meanwhile, the MBA’s measure of refinancing fell to its lowest level since early September.
Joel Kan, MBA Vice President and Deputy Chief Economist stated, “Mortgage rates crept higher last week, with the 30-year fixed rate up to 6.4 percent, its highest level since early October. Despite these slightly higher rates, purchase applications increased over the week and remained at a stronger pace than a year ago, with increases across conventional and government purchase applications. The government purchase index, which includes FHA, VA, and USDA applications, increased 9 percent and had the strongest week since 2023.”
“Despite slowing home-price growth and lower mortgage rates, affordability remains a challenge in many markets and government loan programs remain appealing to qualified buyers looking to purchase a home. The average purchase loan size decreased to its lowest level in two months.”
“Rates have increased by around 10 basis points over the past four weeks and given that many borrowers have been looking to capitalize on rate drops, refinance applications last week declined almost 6 percent to the slowest weekly pace since September,” Kan added.
Last week, the Association released a damning statement regarding the recently announced price increases for credit reporting products. MBA’s President and CEO Bob Broeksmit said, “MBA has long led the call to fix this broken model and shined a light on the role that regulations and the government play in these steep, unjustified price hikes that ultimately hurt housing affordability.”
The MBA survey data represents more than 75% of all retail residential mortgage applications in the United States.
By CEO NA Editorial Staff
