According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 25, mortgage applications increased 2.3% from one week earlier.
The Refinance Index increased 3% from the previous week and was 28% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index decreased 0.3% compared with the previous week and was 27% lower than the same week one year ago.
“Mortgage rates were mostly unchanged last week, with the 30-year fixed rate remaining at 7.31% – the highest since December 2000,” says Joel Kan, MBA’s vice president and deputy chief economist. “Treasury yields peaked early in the week and did move lower by the end, which may have spurred some activity.
“Mortgage applications for home purchases and refinances increased for the first time in five weeks but remained at low levels. Purchase applications increased but were still 27% lower than a year ago, as elevated mortgage rates and tight housing inventory continue to weigh on home buying activity.
“The refinance market continues to be slow despite last week’s gain, which was driven by a 7.9% spike in conventional refinances. Government refinance applications dropped more than 10% last week.”
The refinance share of mortgage activity increased to 30.1% of total applications from 29.5% the previous week.
The FHA share of total applications decreased to 13.2% from 14.3% the week prior. The VA share of total applications remained unchanged at 11.6% from the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 7.10% from 7.09%, with points decreasing to 1.09 from 1.20 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
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