Mortgage application volume increased 2.8% on an adjusted basis during the week ended August 6, as rates increased slightly, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 3% compared with the previous week, while applications for purchases increased 2%.
Year over year, applications for refinances were down 8%, while applications for purchases were down 18%.
On an unadjusted basis, total volume increased 3% compared with the previous week.
“Mortgage applications rebounded last week, including an increase in purchase applications for the first time in nearly a month,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Rates slightly rose but remained below 3 percent, driven by an end-of-week increase in the 10-year Treasury yield following the positive July jobs report.
“Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021,” Kan says. “The refinance share of loan counts was at 68 percent, compared to a 63.4 percent share for refinances by dollar volume, as purchase loans continue to see significantly higher loan sizes.
“The higher level of purchase activity last week was driven by more government purchase applications, including a 3.3 percent increase in FHA loans,” Kan adds. “With low for-sale inventory keeping home-price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices.”
The average rate for a 30-year fixed-rate mortgage, based on closings, was 2.99%, down slightly from 2.97% the previous week.
