Wednesday, December 13, 2023
HomeMacroeconomicsLargest Increase in Mortgage Activity Since March

Largest Increase in Mortgage Activity Since March


Per the Mortgage Bankers Association’s (MBA) survey through the week ending December 8th, total mortgage activity increased 7.4% from the previous week, and the average 30-year fixed-rate mortgage (FRM) rate fell 10 basis points to 7.07%. The FRM rate has decreased by 54 basis points over the past month.

The Market Composite Index, a measure of mortgage loan application volume, rose by 7.4% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 3.5%, and refinancing activity increased 19.4% week-over-week.

The market composite index increase over the week was the largest since the first week of March. Despite this, the index is still 7.7% lower than one year ago. Purchasing activity was 18.1% lower than last year and refinancing activity, for a third consecutive week, increased from a year ago at 27.2%. Buyers continue to struggle with a lack of existing inventory despite rates falling significantly over the past month.

The refinance share of mortgage activity rose from 34.7% to 39.2% over the week while the adjustable-rate mortgage (ARM) share of activity fell from 7.4% from 6.3%. The average loan size for purchases was $396,500 at the start of December, down from $406,600 in November. Conversely, the average loan size for refinancing increased from $245,900 to $251,000. Lastly, the average loan size for an ARM was up at start of December to $809,200 while the average loan size for a FRM fell to $309,100, its lowest level since April 2021.

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