Mortgage application volume increased 0.9% during the week ended June 14, as the average rate for a 30-year fixed-rate mortgage decreased 6.94%, down from 7.02% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 0.4% from the previous week but were up 30% compared with the same week one year ago.
Applications for purchases increased 2% compared with the previous week but were down 12% compared with the same week one year ago.
“Mortgage rates dropped last week following the latest inflation data and the FOMC meeting, with the 30-year conforming rate dropping to 6.94 percent and reaching its lowest level since the end of March,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Purchase applications increased a small amount for the week, led by applications for conventional loans. Refinance application volume was also down slightly for the week but remains about 30 percent higher than this time last year.
“Purchase volume is still more than 10 percent behind last year’s pace, but MBA is forecasting a pickup in home sales for the remainder of the year as more inventory is hitting the market,” Fratantoni adds.
The refinance share of mortgage activity remained unchanged at 35.2% of total applications.
The adjustable-rate mortgage (ARM) share of activity decreased to 6% of total applications.
Photo: Bruce Mars