Mortgage application volume fell during the week ended August 22, dropping 0.5% compared with 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 19% compared with the same week one year ago.
Applications for purchases increased 2% compared with the previous week and were up 25% compared with the same week one year ago.
“Mortgage rates inched higher for the second straight week, with the 30-year fixed-rate up to 6.69 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “While this was not a significant increase, it was enough to cause a pullback in refinance applications.”
“Purchase applications had their strongest week in over a month, up 2 percent, and the average loan size increased to its highest level in two months at $433,400,” Kan adds. “Prospective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling home-price growth in many parts of the country.”
The refinance share of mortgage activity decreased to 45.3% of total applications, down from 46.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.4% of total applications.
Photo: Annika Wischnewsky