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Mortgage applications decreased 3.7% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The Market Composite index decreased 3.7% on a seasonally adjusted basis from one week earlier. Meanwhile, the Refinance Index decreased 5% from the previous week, which was 31% lower than the same week one year ago. The seasonally adjusted Purchase Index also decreased 1% from one week earlier.
"The third straight week of declining purchase activity is a sign that rising home prices and tight supply are constraining home sales - especially in the lower price tiers. Purchase applications were still above last year's pandemic-impacted low point, but fell behind the level of activity seen the same week in 2019," said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting.
The refinance share of mortgage activity decreased to 59.2% of total applications from 60.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 3.6% of total applications.
"Refinance activity has now decreased for nine of the past 10 weeks, as rates have gone from 2.92% to 3.27% over the same period. Last week's index level was the lowest in over a year, as mortgage rates continue to trend higher," added Kan. "Many borrowers have either already refinanced at lower rates or are unwilling - or unable - to refinance at current rates."
Additionally, the FHA share of total applications slightly increased to 10.8% from 10.2% the week prior, the VA share of total applications decreased to 12.1% from 13.8% the week prior, and the USDA share of total applications decreased to 0.4% from 0.5% the week prior.
Click here to read more from the MBA's WMAS.