Mortgage application volume fell 4.2% during the week ended April 25, as the average rate for a 30-year, fixed-rate mortgage dipped slightly to 6.89%, down from 6.90% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 4% compared with the previous week but were up 42% compared with the same week one year ago.
Applications for purchases also decreased 4% from one week earlier but were up 3% compared with the same week one year ago.
“Mortgage rates were little changed last week with the 30-year fixed rate at 6.89 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February.”
“Even with the spring homebuying season underway, purchase applications decreased, as conventional and VA applications saw declines of 6 percent and 4 percent, respectively,” Kan says. “With slowly-increasing housing inventory in many markets and first-time homebuyers still in the mix, FHA purchase applications fared better with only a slight decline. Overall purchase applications continue to run ahead of last year’s pace.”
“Refinance activity dipped again, as mortgage rates remained close to 7 percent, and borrowers hold out for a bigger decline in rates,” Kan adds. “Given the pullback in refinancing, the average loan size for refinances declined to just under $290,000, the lowest level in three months.”
The refinance share of mortgage activity remained unchanged at 37.3% of total applications from the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications.
Photo: Scott Webb