Share this article!

The level of mortgage application activity plummeted in the latest data report from the Mortgage Bankers Association (MBA).

For the week ending Feb. 16, the MBA’s Market Composite Index dropped by 10.6% on a seasonally adjusted basis from one week earlier; the unadjusted index tumbled by 8% compared with the previous week.

The seasonally adjusted Purchase Index decreased 10% from one week earlier while the unadjusted index fell by 6% — the latter was also 13% lower than the same week one year ago.

The Refinance Index took an 11% dive from the previous week and was a scant 0.1% higher than the same week one year ago. The refinance share of mortgage activity decreased to 32.6% of total applications from 34.0% in the previous week.

Among the federal programs, the FHA share of total applications decreased to 13.2% from 13.5% in the week prior while the VA share of total applications decreased to 12.1% from 13.3% and the USDA share of total applications increased to 0.5% from 0.4%.

Separately, the MBA’s monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance dipped by 1 basis point from 0.23% of servicers’ portfolio volume in the prior month to 0.22% as of Jan. 31. The MBA estimated that 110,000 homeowners are in forbearance plans.

Booking.com

During January, the share of Fannie Mae and Freddie Mac loans in forbearance declined 2 basis points to 0.13%. Ginnie Mae loans in forbearance remained the same at 0.39%, and the forbearance share for portfolio loans and private-label securities increased 1 basis point to 0.28%.

“The combination of a potential economic slowdown in 2024, and indications that consumer debt balances and delinquencies are on the rise, could lead to more homeowners struggling to make their mortgage payments and inquire about forbearance and available loan workout options,” said Marina Walsh, MBA’s vice president of industry analysis. “Most pandemic-related protocols have sunset, which gives mortgage servicers different rules of engagement when it comes to assisting borrowers through loan forbearance or a loan workout.”

Reset password

Enter your email address and we will send you a link to change your password.

Get started with your account

to save your favorite homes and more

Sign up with email

Get started with your account

to save your favorite homes and more

By clicking the «SIGN UP» button you agree to the Terms of Use and Privacy Policy

Create an agent account

Manage your listings, profile and more

By clicking the «SIGN UP» button you agree to the Terms of Use and Privacy Policy

Create an agent account

Manage your listings, profile and more

Sign up with email