Mortgage application volume decreased 1.4% during the week ended August 15, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The average rate for a 30-year fixed-rate mortgage was 6.68%, up slightly from 6.67% the previous week.
Applications for refinances fell accordingly – they were down 3% compared with the previous week – while applications for purchases eked out a 0.1% increase.
“Mortgage rates increased slightly last week, with the 30-year fixed rate now at 6.68 percent. Applications were down as a result, driven by a 16 percent decrease in VA applications, which are typically a volatile segment of the market,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “FHA refinance applications increased over the week, as the FHA rate, at 6.39 percent, remained competitive relative to other loan types.”
“Purchase applications were little changed over the week but were at the strongest pace in four weeks and continued to run well ahead of last year’s pace,” Kan says. “Prospective homebuyers remain more active compared to last year despite economic headwinds and uncertainty and affordability challenges.”
The refinance share of mortgage activity decreased to 46.1% of total applications, down from 46.5% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.6% of total applications.
Photo: Herve Margot