Mortgage application volume increased 0.8% during the week ended June 21, as the average rate for a 30-year, fixed-rate mortgage fell to 7.04%, down from 7.12% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances were flat compared with the previous week and were up 26% compared with the same week one year ago.
Applications for purchases increased 1% compared with the previous week but were down 13% compared with the same week one year ago.
“Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to 6.93 percent, the lowest level in more than three months,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates.”
“Purchase applications did see a small increase after adjusting for the Juneteenth holiday,” Kan adds. “Government purchase loans, primarily FHA and VA, saw gains of more than 2 percent over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief.”
The refinance share of mortgage activity decreased to 35.1% of total applications, down from 35.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.1% of total applications.
Photo: Jungwoo Hong