After increasing an impressive 8.4% the previous week, mortgage application volume fell 5.5% during the week ended June 12, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume decreased 6% compared with the previous week.
Applications for refinances decreased 7%, while applications for purchases fell 4%.
On an unadjusted basis, applications for purchases decreased 6% compared with the previous week but were 15% higher compared to the same week one year ago.
‘Rising rates continue to create volatility in weekly mortgage applications activity,’ explains Mike Fratantoni, chief economist for the MBA, in a release. ‘The 10-year Treasury hit 2.5 percent last week and our survey's 30-year fixed rate of 4.22 percent is at its highest level since October 2014. The refinance index dropped to the lowest level since January 2015 as rates continued to increase.’
The refinance share of mortgage activity decreased to 48.5% of total applications.
The week saw the average fixed-rate mortgage (FRM) move well above 4%. The average rate for a 30-year FRM with conforming loan balance was 4.22%, up from 4.17%.
The rate for a 30-year FRM with jumbo loan balance was 4.18%, up from 4.15%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 4.00%, up from 3.90%.
The average rate for a 15-year FRM was 3.43%, up from 3.37%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.15% up from 3.06%.
The ARM share of activity increased to 6.5% of total applications.
Looking at application volume by loan type, the FHA share of total applications was 14.2%, down from 14.3% the week prior. The Veterans Affairs share of total applications was 11.5%, unchanged from the week prior. The U.S. Department of Agriculture share of total applications was 0.9%, down from 1.1% the week prior.