U.S. Mortgage Applications Increase Markedly in September 13 Week
Summary
- Loans to refinance jump 24.2% in latest week, now more than half the total number.
- Rates on all loan types decrease again.
- Average loan size increased again for both purchase loans and refinancings.
Mortgage loan applications jumped 14.2% seasonally adjusted (38.9% y/y) in the week ended September 13, following the prior week’s 1.4% increase. Applications for loans to purchase a house increased 5.4% in the September 13 week (-0.6% y/y) after the prior week’s 1.8% increase. Applications to refinance an existing mortgage surged 24.2% (+126.6% y/y) in the September 13 week after a 0.9% increase the week before. These data are from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
In the week ended September 13, the effective rate on a 30-year fixed-rate loan decreased 13 basis points to 6.32% from 6.45% in the September 6 week. The September 13 rate was the lowest since 6.23% the week ended September 14, 2022, which was 6.23%. The recent peak was 8.12% the week ended October 20, 2023. In the latest week, ended September 13, the effective rate on a 15-year mortgage was 5.60%, down 30 basis points from the week before; the latest rate is the lowest since 5.60% in the week ended September 9, 2022. The rate on a 30-year Jumbo loan was 6.57% in the September 13 week, down 8 basis points from 6.65% the prior week, and the rate on a 5-year ARM was 5.84%, down from 5.96% in the September 6 week.
The share of the number of loans to refinance an existing mortgage was 51.2% in the September 13 week. This is the highest since 52.8% the week ended February 11, 2022; the only other week since then that saw more than 50% of loans to be refinanced was the following week of February 18, 2022, which was just 50.1%. The share of applications for ARMs edged slightly higher in the September 13 week to 5.9% from 5.4% the prior week.
The average size of a mortgage loan was $395,800 in the September 13 week, up from $384,300 the week before and up 8.3% from a year ago. Loans to purchase a house averaged $437,700 in the latest week, up from $425,200 the week before and 5.0% higher than a year ago. Loans to refinance an exiting mortgage averaged $355,800 in the September 13 week, up from $337,600 the week before and 39.8% larger than a year ago.
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.
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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