Mortgage application volume inched up 0.6% during the week ended September 19, as the average rate for a 30-year, fixed-rate mortgage dropped to 6.34%, down from 6.39% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
It was the third consecutive week that applications increased.
Applications for refinances increased 1% from the previous week and were up 42% compared with the same week now year ago.
Applications for purchases decreased 1% compared with the previous week and were up 18% compared with the same week one year ago.
“Mortgage rates declined further last week, with the 30-year fixed rate falling to its lowest level since last September to 6.34 percent,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Interest rates generally have moved up following the FOMC meeting last week but remain in a range that should continue to lead to increased refinance activity.”
“Refinance volume increased further last week and is now 80 percent higher than four weeks ago, accounting for more than 60 percent of all application activity,” Fratantoni says. “The refinance boost last week was from government applications, with VA refinance volume up almost 15 percent. While homebuyer demand typically tends to decrease during the fall, purchase application activity remains relatively strong right now, running 18 percent ahead of last year’s pace.”
The refinance share of mortgage activity increased to 60.2% of total applications, up from 59.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.9% of total applications.
Photo: Ben Mullins