Mortgage application volume rose 0.5% last week as the average rate for a 30-year mortgage decreased to 6.44%, down from 6.5% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
For the week ended August 23, applications for refinances decreased 0.1% from the previous week and were 85% higher compared with the same week one year ago.
Applications for purchases increased 1% compared with a week earlier but were down 9% compared with the same week one year ago.
“Mortgage rates declined for the fourth consecutive week, with the 30-year fixed rate at 6.44 percent, the lowest since April 2023,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Rates have now come down more than 80 basis points from a year ago. Mortgage applications were slightly higher, driven by marginally stronger purchase activity.
“Refinance applications were essentially unchanged but are still 85 percent higher than last year as borrowers continue to act – particularly FHA and VA borrowers,” Kan adds. “As observed in recent weeks, despite lower rates, purchase applications have not moved much. Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase.”
The refinance share of mortgage activity increased to 46.6% of total applications, up from 46.3% the previous week.
The adjustable-rate mortgage share of activity remained unchanged at 5.5%.
Photo: Scott Graham