Total mortgage demand jumped for the fifth straight week, according to the weekly data from the Mortgage Bankers Association.
- The Mortgage Market Index rose to 181.1 for the week ending December 1st, up 2.8% from last week and the highest level since the middle of September.
Refinances Rise. Refis jumped up to an index of 373.3 for the week ending December 1st, up a whopping 14.0% from the previous week and the highest level since October.
- Purchases actually declined slightly with a 0.2% drop from the prior week.
Rates. The average contract interest rate for 30-year fixed-rate mortgage fell for the sixth straight week to 7.17%, down 20 basis points from the prior week and the lowest level since August.
- The average contract interest rate for 15-year fixed-rate mortgage fell 8 basis points to 6.80%.
Breaking It Down. The refinance share of mortgage activity increased to 34.7% of total applications and The adjustable-rate mortgage share fell to 7.4% percent of total applications.
Analysis. Joel Kan, MBA’s Deputy Chief Economist, noted that the refis could have bottomed. “Refinance applications saw the strongest week in two months, increasing on a year-over-year basis for the second consecutive week for the first time since late 2021. The overall level of refinance applications is still very low, but recent increases could signal that 2023 was the low point in this cycle for refinance activity, consistent with our originations forecast.”