According to the Mortgage Bankers Association‘s (MBA) latest Weekly Mortgage Applications Survey, US mortgage applications saw a slight increase of 0.5 percent in the week ending June 16, 2023. Mortgage purchase applications rose for the second straight week, reaching a 6-week high, as the average rate for 30-year fixed-rate mortgages declined for the third consecutive week.
The seasonally adjusted Market Composite Index, which measures mortgage loan application volume, showed a 0.5 percent increase compared to the previous week. However, on an unadjusted basis, the index recorded a 0.6 percent decrease. While the Refinance Index decreased by 2.1 percent from the previous week and marked a 40.4 percent decline from the same week last year, the Purchase Index showed a 1.5 percent increase from the previous week on a seasonally adjusted basis (v +7.6% prior). On an unadjusted basis, the Purchase Index decreased slightly by 0.1 percent but remained 31.6 percent lower than the same week a year ago.
The report also showed the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) dropped for the third straight week, going from 6.77% to 6.73%. Points for these loans, including the origination fee, also declined slightly from 0.65 to 0.64 for borrowers making a 20% down payment.