Mortgage application volume dipped 0.7% during the week ended December 13, as the average rate for a 30-year, fixed-rate mortgage increased to 6.75%, up from 6.67% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The decrease in application volume follows five consecutive weeks of increases.
Applications for refinances decreased 3% compared with the previous week but were up 41% compared with the same week one year ago.
Applications for purchases increased 1% compared with the previous week and were up 6% compared with the same week one year ago.
“Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks,” says Joel Kan, vice president and deputy chief economist. “Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market. Refinance applications declined last week, largely driven by VA refinances that were down 17 percent after two weeks of gains.”
The refinance share of mortgage activity decreased to 46.7% of total applications, down slightly from 46.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.3% of total applications.
Photo: Romain Dancre