Mortgage application volume inched up 1.6% during the week ended August 30, as the average rate for a 30-year, fixed-rate mortgage dipped to 6.43%, down from 6.44% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinancings decreased 0.3% compared with the previous week but were up 94% compared with the same week one year ago.
Applications for purchases increased 3% compared with the previous week but were down 4% compared with the same week one year ago.
“Most mortgage rates moved lower last week, with the 30-year fixed rate edging down slightly to 6.43 percent,” says Joel Kan, vice president and deputy chief economist, in a statement. “Purchase applications increased more than 3 percent over the week and are inching closer to last year’s levels, with government purchase applications leading the increase. Refinance applications were slightly down but continued to show strong annual gains as borrowers with higher rates have been refinancing to lower their monthly payments. Similar to purchase activity, refinance activity has picked up across the various loan types.
“The refinance share of applications averaged almost 46 percent in August, the highest monthly average since March 2022,” Kan adds.
The refinance share of mortgage activity decreased to 46.4% of total applications, down from 46.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.5% of total applications.
Photo: Jungwoo Hong