(iStock)
The Mortgage Bankers Association (MBA) Market Composite Index, a measure of mortgage application volumes from a weekly survey, increased 8.2% on a seasonally adjusted (SA) basis from May to June. Compared to June 2023, the index increased 1.2%. Up 1.0%. The Purchase Index and Refinance Index increased by 4.1% and 14.3% (SA) respectively for the month. On an annual basis, the Purchase Index decreased by 10.8% and the Refinance Index increased by 29.4%, according to the National Association of Home Builders.
The increase in mortgage activity was driven by a 9.8 basis points (bps) decline in 30-year fixed mortgage rates, from an average of 7.08% in May to 6.98% in June. However, compared to the same month last year, mortgage rates in June were up 19.8 bps.
The average loan size across the market (including purchases and refinances) is The average mortgage loan amount in June increased 2.0% from May on a not seasonally adjusted (NSA) basis to $373,500. Similarly, the month-on-month change in purchase loans decreased 1.7% to an average amount of $431,000 (NSA), while refinance loans increased 4% to an average amount of $268,500 (NSA). The average loan amount for adjustable-rate mortgages (ARMs) increased 2.9% over the same period, from $1 million to $1.03 million.