Mortgage application volume decreased 2.6% during the week ended June 28, as the average rate for a 30-year, fixed-rate mortgage increased to 7.03%, up from 6.93% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 2% compared with the previous week but were up 29% compared with the same week one year ago.
Applications for purchases decreased 3% compared with the previous week and were down 12% compared with the same week one year ago.
“Mortgage rates moved higher last week, crossing the 7 percent mark, even as the latest inflation data has kept market expectations alive for a rate cut from the Fed later this year,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Purchase applications decreased the final full week of June, even as both new and existing inventories have increased over the past few months. Refinance activity also remains subdued – although there was a slight increase in applications for conventional refinance loans.”
The refinance share of mortgage activity increased to 35.7% of total applications, up from 35.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.0% of total applications.
Photo: Pascal Bernardon