Mortgage applications in US surge as rates drop for 6th straight week
Date
9/12/2024 4:18:24 AM
(MENAFN) According to a report released Wednesday by the Mortgage Bankers Association (MBA), US mortgage applications increased last week as mortgage rates continued their decline for the sixth consecutive week. The market composite index, which tracks the volume of mortgage loan applications, rose by 1.4 percent on a seasonally adjusted basis for the week ending September 6. However, on an unadjusted basis, the index experienced a 10 percent decrease compared to the previous week.
Joel Kan, the MBA’s vice president and deputy chief economist, attributed this trend to several factors, including lower Treasury yields. He noted that recent data indicating a cooling inflation rate, a slowing job market, and the anticipated first rate cut from the Federal Reserve later this month have contributed to the decline in mortgage rates. "With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace," Kan remarked.
The average contract interest rate for 30-year fixed-rate mortgages fell to 6.29 percent, marking a reduction from the previous week’s rate of 6.43 percent. This rate is the lowest it has been since February 2023. Similarly, the rate for 15-year fixed-rate mortgages decreased to 5.71 percent from 5.98 percent during the same period.
The MBA's survey, which encompasses over 75 percent of US retail residential mortgage applications, provides a comprehensive view of the mortgage market. The ongoing decline in rates has been a key driver behind the increased volume of mortgage applications and the surge in refinancing activity.
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