MBA: Increased Mortgage Activity in June

From May to June, the Market Composite Index, a measure of mortgage loan application volume derived from the Mortgage Bankers Association’s (MBA) weekly survey, rose by 8.2% on a seasonally adjusted basis.

In contrast to June 2023, the index has increased by 1.0%. Over the month, the Purchase and Refinance indices have increased by 4.1% and 14.3% (SA), respectively.

According to the National Association of Home Builders, the Purchase Index fell 10.8% year on year, while the Refinance Index rose 29.4%.

Mortgage activity increased as the 30-year fixed mortgage rate fell 9.8 basis points (bps) from 7.08% in May to 6.98% in June.

However, compared to the same month last year, the June mortgage rate is 19.8 basis points higher.

In June, the average loan size for the overall market (including purchases and refinances) decreased by 2.0% from May to $373,500 on a non-seasonally adjusted (NSA) basis.

Similarly, the month-over-month change for purchase loans fell 1.7% to an average of $431,000 (NSA), while refinance loans rose 4% to an average of $268,500 (NSA).

The average loan size for an adjustable-rate mortgage (ARM) climbed by 2.9% over the same time period, from $1 million to $1.03 million.

[Read more on Eyeonhousing.org]