Mortgage rates remain elevated but application volume remains higher than last year at this time, according to the latest data from the Mortgage Bankers Association (MBA).
The latest Market Composite Index from the MBA—its measure of mortgage loan activity volume and includes purchases and refinances—shows little change in application activity this week, increasing 1.0% on a seasonally adjusted basis from a decline of 3.8% last week. On an unadjusted basis, the Index decreased 10% compared with the previous week.
The average 30-year mortgage rate decreased to 6.47% last week from 6.52% the previous week, but was back up to 6.58% as of this writing.
“Mortgage rates changed little over the course of last week, despite the more hawkish tone from the FOMC at its June meeting,” said Mike Fratantoni, MBA’s SVP and chief economist. “Purchase application volume edged slightly lower, while refinance activity posted modest gains. Despite the elevated mortgage rates and overall economic uncertainty, mortgage application volume is running 8 percent above year-ago levels.”
MBA’s Refinance Index increased 3% from the previous week and was 17% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index decreased 12% compared with the previous week and was 3% higher than the same week one year ago, according to the report.
The refinance share of mortgage activity increased to 41.5% of total applications from 40.3% the previous week, MBA reported. The adjustable-rate mortgage (ARM) share of activity decreased to 8.2% of total applications.
Government-backed loans were mixed again this week: The FHA share of total applications increased to 17.9% from 17.5% the week prior. The VA share of total applications decreased to 12.3% from 12.9% the week prior, and the USDA share of total applications increased to 0.5% from 0.4% the week prior.
To view the full report, click here.
