According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 9, 2023, mortgage applications increased 7.2% from one week earlier.
The Market Composite Index increased 7.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 18% compared with the previous week. The Refinance Index increased 6% from the previous week and was 41% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 8% from one week earlier. The unadjusted Purchase Index increased 17% compared with the previous week and was 27% lower than the same week one year ago.
“Mortgage rates declined for the second straight week, with the 30-year fixed rate decreasing to 6.77%. Mortgage applications were up over the week, but remained well below levels from a year ago,” says Joel Kan, MBA’s vice president and deputy chief economist. “Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets.
Adds Kan, “Refinance applications accounted for less than a third of all applications and remained more than 40% behind last year’s pace. Elevated rates have reduced the benefit of a rate/term refinance for many borrowers and continue to discourage cash-out refinances as borrowers are unwilling to give up their lower rates.”
The refinance share of mortgage activity remained unchanged at 27.3% of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.5% of total applications.
The FHA share of total applications decreased to 13.0% from 13.2% the week prior. The VA share of total applications increased to 12.6% from 12.5% the week prior. The USDA share of total applications increased to 0.5% from 0.4% the week prior.
