| Actual | Previous | |
|---|---|---|
| Composite Index - W/W | 2.5% | -2,1% |
| Purchase Index - W/W | 3.0% | -1.4% |
| Refinance Index - W/W | 1.6% | -3.5% |
Highlights
The MBA composite mortgage applications index is up 2.5 percent in the Nov. 3 week, reflecting a big decline in mortgage rates in the latest week. The index is down 7.5 percent from four weeks ago, and down 17.0 percent from a year earlier.
"The 30-year fixed mortgage rate dropped by 25 basis points to 7.61 percent, the largest single week decline since July 2022," said Joel Kan, MBA's deputy chief economist.
The purchase index is up 3.0 percent from the prior week, down 6.2 percent from four weeks earlier, and down 20.6 percent from a year ago. The refinance index is up 1.6 percent week-over-week, down 9.9 percent from four weeks ago, and down 6.9 percent from the same time last year.
The refinance share of mortgage activity rose to 31.4 percent of applications from 31.2 percent the previous week. The adjustable-rate mortgage share declined to 9.8 percent of applications from 10.7 percent last week.
The FRM mortgage index is up 3.6 percent and the ARM mortgage index is down 5.8 percent in the latest week from last week.
The contract rate for a 30-year fixed rate mortgage is down 25 basis points to 7.61 percent in the Nov. 3 week, down 6 basis points from four weeks ago, and up 47 basis points from a year earlier. The rate for a 5-year adjustable rate mortgage is 6.76 percent, down 1 basis point from the prior week, up 43 basis points from four weeks earlier, and up 89 basis points from the year-ago week.
"The 30-year fixed mortgage rate dropped by 25 basis points to 7.61 percent, the largest single week decline since July 2022," said Joel Kan, MBA's deputy chief economist.
The purchase index is up 3.0 percent from the prior week, down 6.2 percent from four weeks earlier, and down 20.6 percent from a year ago. The refinance index is up 1.6 percent week-over-week, down 9.9 percent from four weeks ago, and down 6.9 percent from the same time last year.
The refinance share of mortgage activity rose to 31.4 percent of applications from 31.2 percent the previous week. The adjustable-rate mortgage share declined to 9.8 percent of applications from 10.7 percent last week.
The FRM mortgage index is up 3.6 percent and the ARM mortgage index is down 5.8 percent in the latest week from last week.
The contract rate for a 30-year fixed rate mortgage is down 25 basis points to 7.61 percent in the Nov. 3 week, down 6 basis points from four weeks ago, and up 47 basis points from a year earlier. The rate for a 5-year adjustable rate mortgage is 6.76 percent, down 1 basis point from the prior week, up 43 basis points from four weeks earlier, and up 89 basis points from the year-ago week.
Definition
The Mortgage Bankers' Association compiles various mortgage loan indexes. The purchase applications index measures applications at mortgage lenders. This is a leading indicator for single-family home sales and housing construction.
Description
This provides a gauge of not only the demand for housing, but economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as the Mortgage Bankers Association purchase applications, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.
Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once a home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month.
Since the economic backdrop is the most pervasive influence on financial markets, housing construction has a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the MBA purchase applications index carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once a home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month.
Since the economic backdrop is the most pervasive influence on financial markets, housing construction has a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the MBA purchase applications index carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
