U.S. Mortgage Applications Rose in the February 7 Week
Summary
- Purchase loan applications fell while refinancing loan applications jumped in the latest week.
- Effective interest rates on 30-year fixed-rate loans edged down.
- Average loan size rose to the highest since the October 4 week.
Mortgage applications rose 2.3% (13.2% y/y) in the week ended February 7, after rising 2.2% (7.0% y/y) in the week ended January 31, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a house fell 2.3% (+3.0% y/y) in the week ended February 7, after falling 3.5% (+2.1% y/y) in the January 31 week. Applications for loan refinancing jumped 9.6% (32.9% y/y) in the latest week after soaring 12.2% (16.8% y/y) in the prior week.
The effective interest rate on a 30-year fixed-rate loan edged down 2bps to 7.14% in the week ended February 7 from 7.16% in the week ending January 31. The rate on 15-year fixed-rate mortgages fell 3bps to 6.51% in the week ended February 7 from 6.54% in the January 31 week. The rate on 30-year jumbo loans fell 7bps to 7.07% in the latest week from 7.14% in the prior week, while the rate on a 5-year ARM rose 13bps to 6.44% in the week ended February 7 after dropping 36bps to 6.31% in the week ended January 31.
The share of applications for refinancing an existing loan edged up to 40.2% of total applications in the week ended February 7 from 39.0% in the week ending January 31. The adjustable-rate mortgage (ARM) share of activity rose to 6.0% in the latest week from 5.8% in the prior week.
The average size of a mortgage loan rose 2.1% (3.1% y/y) to $393,500 in the week ending February 7 from $385,400 in the week ending January 31, reaching the highest level since the October 4 week. The average size of a purchase loan rose 2.0% (3.5% y/y) to $456,100 in the February 7 week, from $447,300 in the January 31 week, reaching the highest level since the March 18, 2022 week. The average size of a loan to refinance a mortgage rose 4.2% (12.4% y/y) to $300,500 in the latest week from $288,400 in the January 31 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.
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).
More Economy in Brief
