Mortgage application volume surged 10.4% last week, as the average rate for a 30-year fixed-rate mortgage fell to 6.75%, down from 6.81%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
For the week ended January 12, applications for refinances increased 11% compared with the previous week and were up 10% compared with the same week one year earlier.
Applications for purchases increased 9% compared with the previous week but were down 20% compared with the same week one year ago.
“Mortgage rates declined across all loan types as Treasury yields moved lower last week on incoming inflation data, which helped to support a rise in mortgage applications,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed mortgage rate decreased six basis points to 6.75 percent, the lowest rate in three weeks. Compared to a holiday-adjusted week, both purchase and refinance applications were up, and the increases were heavily driven by the conventional market.”
“Although purchase activity is lagging year-ago levels, refinance applications have improved from their recent low point and have been showing year-over-year gains, albeit at low levels,” Kan adds. “If rates continue to ease, MBA is cautiously optimistic that home purchases will pick up in the coming months.”
The refinance share of mortgage activity decreased to 37.5% of total applications, down from 38.3%.
The adjustable-rate mortgage (ARM) share of activity increased to 5.9% of total applications.
Photo: Jungwoo Hong