Mortgage application volume increased 3.7% on an adjusted basis during the week ended January 19, as the average rate for a 30-year, fixed-rate mortgage increased to 6.78%, up from 6.75% the previous week, according to the Mortgage Bankers Association (MBA).
Applications for refinances decreased 7% compared with the previous week and were down 8% compared with the same week one year ago.
Applications for purchases increased 3% compared with the previous week but were down 18% compare with the same week one year ago.
“Mortgage rates increased slightly last week, but there continues to be an upward trend in purchase activity,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season.
“Refinance applications declined over the week and remained at low levels,” Kan adds. “There is still little incentive for homeowners to refinance with rates at these levels.”
The refinance share of mortgage activity decreased to 32.7% of total applications, down from 37.5% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.3% of total applications.
Photo: Jungwoo Hong