Economic uncertainty has once again put pressure on mortgage applications, taking a downturn in response to mortgage rates rising once again, according to the latest data.
The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey saw applications dip 1% for the week ending Aug. 21. On an unadjusted basis, applications dipped 2%.
MBA’s Vice President and Deputy Chief Economist Joel Kan noted that mortgage rates last week peaked to a three-week high, and “have increased around 20 basis points over the past two months.”
He also noted a slowdown in the purchase market in the past two months, as purchase applications slipped 0.3% this week, and fell 2% on an unadjusted basis. Year-over-year, purchase applications are down 5%.
Kan pointed out that this turn in rates has also “dampened refinancing activity,” with refinance applications falling 2% this week and are down 17% year-over-year. The refinance share of mortgage activity was also essentially flat, from 41.9% last week to 42% this week.
As for other shares of mortgage activity, the adjustable-rate mortgage share of activity increased to 7.9% of total applications. The FHA share of total applications decreased from 17.1% the week prior to 16.2%. The VA share of total applications increased from 12.6% the week prior to 12.8%. Lastly, the USDA share of total applications remained unchanged at 0.5% from the week prior.
