Mortgage application volume increased 3.7% during the week ended April 21, as the average rate for a 30-year fixed rate mortgage increased to 6.55%, up from 6.43% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 2% compared with the previous week but were down 51% compared with the same week in 2022.
Applications for purchases increased 5% from the previous week but were down 28% compared with a year ago.
“Both conventional and government home purchase applications increased last week,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “However, activity was still nearly 28 percent below last year’s pace, as high mortgage rates and low supply have slowed the market this year, even as home-price growth has decelerated in many markets across the country.”
“Refinance applications also increased last week but remained at half of last year’s levels,” Kan adds. “Although incoming data points to a slowdown in the U.S. economy, markets continue to expect that the Fed will raise short-term rates at its next meeting, which have pushed Treasury yields somewhat higher. As a result of the higher yields, mortgage rates increased for the second straight week to their highest level in over a month, with the 30-year fixed rate now at 6.55 percent.”
The refinance share of mortgage activity decreased to 26.8% of total applications, down from 27.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.7% of total applications.
Photo: Romain Dancre