According to Mortgage Banker Association’s (MBA) Weekly Mortgage Application Survey, for the week ending on June 25, mortgage applications decreased 6.9% compared to one week earlier. On an unadjusted basis, applications fell 7% from the previous week.
The refinance index decreased 8% from the previous week and fell 15% year-over-year. The seasonally adjusted purchase index fell 5% from the previous week, which is 17% lower than the same week a year ago.
The refinance share of mortgage activity decreased to 61.9% of total applications from 62.5% the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 3.6% of total applications.
“Mortgage application volume fell to the lowest level in almost a year and a half, with declines in both refinance and purchase applications,” said Mike Fratantoni, MBA's senior vice president and chief economist. “Mortgage rates were volatile last week, as investors tried to gauge upcoming moves by the Federal Reserve amidst several divergent signals, including rising inflation, mixed job market data, strong consumer spending, and a supply-constrained housing market that has led to rapid home-price growth."
The average contract interest rate for a 30-year-fixed mortgage increased to 3.20% from 3.18%. Points decreased to 0.39 from 0.48 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for a 30-year-fixed mortgage with jumbo loan balances (greater than $548,250) decreased to 3.23% from 3.26%. Points decreased to 0.33 from 0.44 (including the origination fee) for 80% LTV loans.
"Purchase applications for conventional loans declined last week to the lowest level since last May. The average loan size for total purchase applications increased, indicating that first-time homebuyers, who typically get smaller loans, are likely getting squeezed out of the market due to the lack of entry-level homes for sale,” Fratantoni added.
The above information was gathered through a survey representing 75% of all U.S. residential mortgage applications. To view MBA's Weekly Applications Survey, please visit www.mba.org/WeeklyApps.
