U.S. Mortgage Applications Rose in the Latest Week
Summary
- Overall mortgage applications increased in the week of January 20.
- Applications for loans to both purchase and refinance increased in the latest week but remain well below their year-ago pace.
- The average effective rates on 30-year fixed loans declined for the second consecutive week.
Mortgage applications rose 7.0% (-53.7% y/y) in the week ended January 20 from the week ended January 13, when they rose 27.9% (-59.8% y/y). These results include an adjustment for the observance of Martin Luther King, Jr. Day. These data come from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a house rose 3.4% (-31.6% y/y) from the weekly rise of 24.7% (-35.0% y/y) in the prior week. Applications for refinancing a loan rose 14.6% (-74.8% y/y) in the week ended January 20, following the jump of 34.2% (-80.7% y/y) in the January 13 week.
The share of applications for refinancing an existing loan was 31.9% in the week of January 20, up from 31.2% in the week prior. The percentage of applications that were ARMs was 6.5%, slightly down from 6.6% in the January 13 week.
The effective rate on a 30-year fixed-rate loan declined by 3 bps to 6.40% in the week ended January 20, its lowest level since September 2022, but still sharply higher than the 3.85% rate that prevailed in the week of January 21, 2022. Similarly, the rate on 15-year fixed-rate mortgages dropped 5 bps to 5.67% in the week of January 20. The rate on 30-year Jumbo loans declined by 16 bps to 6.04% in the January 20 week. Bucking the trend, the rate on the 5-year ARM rose 16 bps to 5.74%.
The average loan size rose 2.9% w/w to $368,500 in the week ended January 20. The series high of $401,900 was reached in the week ended May 6. The average size of a purchase loan rose 3.4% w/w to $415,000 in the week ended January 20. The average loan size to refinance a mortgage rose 2.5% w/w to $269,300 in the January 20 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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