According to the Mortgage Bankers Association's weekly survey for the week ending January 13, application volume for both refinancing and purchasing a home increased by double digits in the first full week of the new year.
The Market Composite Index tracked by the MBA rose 27.9% from the previous week after seasonal adjustment and 32% when not adjusted.
According to MBA chief economist Mike Fratantoni, "mortgage rates are now at the lowest level since September 2022 and about a percentage point below the peak mortgage rate last fall." With the start of the spring buying season comes lower mortgage rates and an increase in the number of available homes, making homeownership more affordable for first-time buyers.
It was reported that refinancing increased by 34% and purchase applications increased by 25% from the previous week. Despite the improvements, Fratantoni reported that refinance application volume is 81% lower than this time last year, and purchase volume is 35% lower than this time last year.
The percentage of mortgage applications for refinancing rose by five basis points, to 31.2%, while the percentage of applications for ARMs fell by the same amount, to 6.6%. Application volume for the Federal Housing Administration (FHA) dropped to 13%, the Veterans Affairs (VA) to 11.8 %, and the Department of Agriculture (USDA) to 0.6%, all from the previous week.
