U.S. Mortgage Applications Rebounded in the Latest Week
Summary
- Total mortgage applications jumped 27.9% in the week of January 13.
- Applications for loans to both purchase and refinance increased by double-digit percentages.
- The average effective rates on loans reached their lowest levels since September 2022.
Mortgage applications rose 27.9% (-59.8% y/y) in the week ended January 13 from the week ended January 6, when they rose 1.2% (-67.8% y/y). These data come from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a house rose 24.7% (-35.0% y/y) in the week ended January 13 following a small decline of 0.5% (-43.8% y/y) in the week ended January 6. Applications for refinancing a loan jumped 34.2% (-80.8% y/y) in the January 13 week after a rise of 5.1%% (-86.1% y/y) the week prior.
The share of applications for refinancing an existing loan was 31.2% in the week of January 13, up from 30.7% the week prior. The percentage of applications that were ARMs was 6.6% in the January 13 week, down from 7.3% in the week ended January 6.
The effective rate on a 30-year fixed-rate loan declined by 20 bps to 6.43% in the week ended January 13, its lowest level since September 2022. Similarly, the rate on 15-year fixed-rate mortgages dropped 38 bps to 5.72% in the week of January 13. The rate on 30-year Jumbo loans declined by 8 bps to 6.20% in the January 13 week. The rate on the 5-year ARM declined 6 bps to 5.58%.
The average loan size rose 2.3% w/w to $358,100 in the week ended January 13. The series high of $401,900 was reached in the week ended May 6. The average size of a purchase loan rose 3.2% w/w to $401,300 in the week ended January 13. The average loan size to refinance a mortgage rose 0.4% w/w to $262,700 in the January 13 week.
The Mortgage Bankers 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.
Kathleen Stephansen, CBE
AuthorMore in Author Profile »Kathleen Stephansen is a Senior Economist for Haver Analytics and an Independent Trustee for the EQAT/VIP/1290 Trust Funds, encompassing the US mutual funds sponsored by the Equitable Life Insurance Company. She is a former Chief Economist of Huawei Technologies USA, Senior Economic Advisor to the Boston Consulting Group, Chief Economist of the American International Group (AIG) and AIG Asset Management’s Senior Strategist and Global Head of Sovereign Research. Prior to joining AIG in 2010, Kathleen held various positions as Chief Economist or Head of Global Research at Aladdin Capital Holdings, Credit Suisse and Donaldson, Lufkin and Jenrette Securities Corporation.
Kathleen serves on the boards of the Global Interdependence Center (GIC), as Vice-Chair of the GIC College of Central Bankers, is the Treasurer for Economists for Peace and Security (EPS) and is a former board member of the National Association of Business Economics (NABE). She is a member of Chatham House and the Economic Club of New York. She holds an undergraduate degree in economics from the Universite Catholique de Louvain and graduate degrees in economics from the University of New Hampshire (MA) and the London School of Economics (PhD abd).
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