U.S. Mortgage Applications Rise 11.2% in the March 7 Week
Summary
- Purchase applications increase 7.0% w/w; refinancing loan applications gain 16.2% w/w.
- Effective interest rate on 30-year fixed-rate loans declines to a still-elevated 6.85%.
- Average loan size rises to a record high.
Mortgage applications rose 11.2% w/w (33.6% y/y) in the week ending March 7 following a 20.4% jump in the week ending February 28 and two consecutive weekly declines, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the second successive weekly rise to the index level of 269.3, the highest since the October 4 week. Applications for loans to purchase a house increased 7.0% (4.7% y/y) in the March 7 week after a 9.1% rise in the February 28 week and five straight w/w decreases. Applications for loan refinancing gained 16.2% (89.7% y/y) in the March 7 week following a 37.0% surge in the previous week and two consecutive weekly drops.
The effective interest rate on a 30-year fixed-rate loan fell 6bps to 6.85% in the week ending March 7 after declining to 6.91% in the week ending February 28, posting the sixth straight w/w fall and the lowest since the October 18 week; it was up from a low of 6.29% in the September 20 week but down from a high of 8.12% in the week of October 20, 2023. The rate on 15-year fixed-rate mortgages fell 7bps to 6.21% in the March 7 week, the lowest since the October 18 week, from 6.28% in the previous week; it was up from a low of 5.60% in the September 20 week but down from a high of 7.44% in the week of October 27, 2023. The rate on 30-year jumbo loans decreased 15bps to 6.82% in the March 7 week, the lowest since the October 4 week, from 6.97% in the prior week; it was up from a low of 6.57% in the September 13 week but below a high of 7.99% in the week of October 27, 2023. By contrast, the rate on a 5-year ARM rose 6bps to 6.07% in the March 7 week, the first w/w rise since the February 3 week, from 6.01% in the previous week; it was above a low of 5.84% in the September 13 week but down from a high of 7.31% in the week of October 27, 2023.
The share of applications for refinancing an existing loan rose to 45.6% of total applications in the week ending March 7 from 43.8% in the week ending February 28, registering the third successive w/w rise and the highest since the December 13 week; however, that was down from a peak of 55.7% in the September 20 week. Meanwhile, the adjustable-rate mortgage (ARM) share of activity jumped to 7.2% in the March 7 week, the highest since the August 9 week, from 5.8% in the prior week; it was up from its recent low of 4.7% in the January 3 week but below a high of 10.7% in the week of October 27, 2023.
The average size of a mortgage loan advanced 5.1% w/w (7.4% y/y) to $419,700 in the March 7 week, the highest on record, after a 3.7% rise to $399,200 in the February 28 week. The average size of a purchase loan rose 2.8% (3.7% y/y) to $460,800 in the March 7 week, also the highest on record, after a 1.6% increase to $448,300 in the prior week. The average size of a loan to refinance a mortgage gained 10.2% (35.0% y/y) to $370,600 in the March 7 week, the highest since the September 27 week, on top of a 13.4% jump to $336,200 in the previous week.
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.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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