Mortgage application volume inched up 0.1% during the week ended January 17, as the average rate for a 30-year decreased to 7.02%, down from 7.09% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 3% compared with the previous week but were up 42% compared with the same week one year ago.
Applications for purchases increased 1% compared with the previous week and were up 2% compared with the same week one year ago.
“Mortgage application volume was little changed last week, but there was a small increase in conventional purchase volume, which brought the level of total purchase volume up almost 2 percent above last year at this time,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Mortgage rates remained near 7 percent, a key psychological level, which likely continues to slow the pace of activity for both refinances and purchases. Incoming economic data are likely to keep the Federal Reserve on hold for now, while uncertainties about economic policy are likely to keep longer-term rates, including mortgage rates, steady at these levels.”
The refinance share of mortgage activity decreased to 40.4% of total applications, down from 42.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 5.5% of total applications.
Photo: Ben Mullins
