📈 Big News: Mortgage Applications Surged 10% in 2024!

Get updated on the latest homebuying trends ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Better] [Better]( This week's mortgage rates [Rate chart] [Rate chart]( Source: US average mortgage rates from [FreddieMac]( --------------------------------------------------------------- Better Mortgage Interested in today's rates? [See Better Mortgage rates]( --------------------------------------------------------------- #FundFact In September 2023, mortgage application volume plummeted to the lowest level we’ve seen since 1996.¹ Things to know Mortgage loan application volume spikes in the US Mortgage loan application volume spikes in the US [Rate chart] [Rate chart]( Source: [Mortgage Bankers Association]( data for week ending Jan 5, 2024. The numbers are in — aspiring homebuyers are ready to resume their homebuying journeys! During the first week of 2024, the US saw the largest increase in mortgage loan application volume since last January.² The Mortgage Bankers Association (MBA) reported that ending the week of January 5, its Market Composite Index had increased 9.9% on a seasonally adjusted basis compared to the week prior. The Market Composite Index is a measure of mortgage loan application volume, which covers all mortgage applications including conventional and government mortgage applications for both purchase and refinance. This news comes just a few short months after mortgage application volume hit the lowest numbers seen since 1996, nearly three decades ago!¹ You may find it even more interesting that this increase in applications came despite the minor uptick we saw in interest rates at the beginning of January. Ending 2023, rates had begun to slowly decline, coming down to 6.94% during the week ending [December 29](. [As of January 18]( we’re seeing rates coming in closer to 6.6%. While there’s no way to say what caused the influx in applications, here’s what we know: - Housing economists predict that while there might be a drop in rates, it’ll only be a modest amount.³ Buyers who have been putting their home ownership goals on pause in the hopes of snagging a lower rate may be ready to make moves with rates already down from last year, and uncertainty about how much further they will drop this year. If rates do drop, home prices will likely increase creating a competitive housing market that may not outweigh the savings of a minor rate drop. - Rates have dropped over 1% since October 2023.⁴ Mortgage interest rates for 30-year fixed loans hit a peak of 8.45% in October 2023 (estimated to be the highest level for 30-year rates since 2000), and were in the 7% range for most of the year. The 1% decrease in interest rates may have translated into thousands of dollars of savings over the life of a loan, potentially opening the door to homeownership for many. - The conforming loan limit has been updated for 2024. In November 2023, Fannie Mae announced the 5.5% increase in the conforming loan limit from $726,200 to $766,550.⁵ In high cost areas, the conforming limit has been set to $1,149,825. - Lenders may be playing catch-up. While the increase in mortgage applications is a promising start to the year, MBA vice president, Joel Kan pointed out that some of the recent activity is likely due to lenders catching up after the holiday season.⁶  Whatever the case may be, we’re excited to see how homebuyers will navigate the housing market in 2024. Below, we’ve included some of the highlights from the MBA’s Weekly Mortgage Applications Survey. Highlights from MBA’s Weekly Mortgage Applications Survey⁷ - The average size of a loan dipped to $353,500 from $356,500 the prior week while the size of a purchase loan rose slightly to $402,900. - The average contract interest rate for 30-year fixed-rate mortgages (FRM) which met the new conforming loan limit of $ $766,550 increased to 6.81% from 6.76%, with points unchanged at 0.61. - The FHA share of applications decreased to 14.4% from 14.5% the week prior while the VA share grew to 16.3% from 14.6%. USDA’s share was 0.4%. - The rate for 30-year FRM with jumbo loan balances exceeding the conforming limit increased to 6.98% from 6.86%. Points increased to 0.43 from 0.41. - Thirty-year FRM with FHA backing had an average rate of 6.56% with 0.84 point. The prior week the rate was 6.51% with 0.86 point. - The average rate for 15-year FRM increased to 6.41% from 6.26%, with points decreasing to 0.55 from 0.73. - Five/one adjustable-rate mortgage (ARM) rates jumped an average 46 basis points to 6.17% with a decrease of points to 0.56 from 0.59. - The adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications from 6.0 the prior week. --------------------------------------------------------------- Better Mortgage Did you buy a home when rates peaked last year? [Check your refi savings]( --------------------------------------------------------------- Press play Follow us on social to stay up to date with the latest mortgage tech, tips, and tools: Watch on [TikTok]( • [Instagram]( • [YouTube]( • [Facebook]( --------------------------------------------------------------- Better Mortgage Questions? 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