U.S. Mortgage Applications Rose Sharply in the Latest Week
Summary
- Total mortgage applications surged 10.4% in the week ended January 12.
- Applications for loans to purchase and to refinance also posted strong rises.
- The average effective rates on fixed-rate loans dropped in the latest week.
Mortgage applications surged another 10.4% w/w (-12.0% y/y) in the week ended January 12, following the 9.9 % w/w (2.1% y/y) jump in the week ended January 5. These data come from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. Applications for loans to purchase a house rose 9.2% (-19.3% y/y) in the week ended January 12, after rising 5.6% (-6.8% y/y) in the week ended January 5. Applications for refinancing a loan jumped another 10.8% (10.3% y/y) in the latest week, following the 18.8% (30.2% y/y) advance in the prior week.
The share of applications for refinancing an existing loan edged down to 37.5% in the week ended January 12 from the 38.3% share in the week ended January 5. The percentage of applications that were ARMs rose to 5.9% in the latest week from 5.4% in the week ended January 5.
The effective rate on a 30-year fixed-rate loan edged down 4bps to 6.94% in the week ended January 12 from 6.98% in the week ended January 5. The rate on 15-year fixed-rate mortgages dropped 17bps 6.38% in the latest week from 6.55% in the week ended January 5. This is the lowest rate since the 6.33% rate reached in the week ended May 19, 2023. The rate on 30-year Jumbo loan dropped 12bps to 6.99% in the week ended January 12, following the 14bps rise to 7.11% in the week ended January 5. The rate on the 5-year ARM rose 2bps to 6.40% in the latest week, after the 45bps jump to 6.38% in the week of January 5.
The average loan size rose 2.1% w/w (0.7% y/y) to $360,800 in the January 12 week, after a decline of 0.8% w/w (+1.0% y/y) to $353,500 in the January 5 week. The average size of a purchase loan rose 3.0% w/w (3.5% y/y) to $414,900 in the week ended January 12, after the 1.1% w/w (+3.6% y/y) decline to $402,900 in the week ended January 5. The average loan size to refinance a mortgage declined 1.2% w/w (+4.0% y/y) to $270,700 in the week ended January 12, after a rise of 2.5% w/w (4.8% y/y) to $274,100 in the January 5 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).
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