According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications was up 9.9 percent during the first week of the year. The gains included a 6 percent increase in demand for loans to buy homes and a 19 percent spike in refinance activity. Joel Kan, MBA’s vice president and deputy chief economist, says the improvement came despite a rate increase. “Despite an uptick in mortgage rates to start 2024, applications increased after adjusting for the holiday,” Kan said. “The increase in purchase and refinance applications for both conventional and government loans is promising to start the year but was likely due to some catch-up in activity after the holiday season and year-end rate declines.” Average rates were up across all loan categories last week, including for 30-year fixed rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
