Mortgage application volume was flat during the week ended June 28, as a 1% increase in applications for refinances was basically offset by a 1% increase in applications for purchases, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Total volume decreased 0.1% compared with the previous week.
On an unadjusted basis, total volume decreased 0.3%. Applications for purchases increased 1% compared with the previous week and were 10% higher compared with the same week one year earlier.
The survey continues to demonstrate that home shoppers are extremely rate sensitive: The drop in applications for refinances corresponded with a sight increase in the average rate for a 30-year fixed rate mortgage, which at 4.07% was only slightly higher than the previous week’s 4.06%.
“Purchase applications picked up slightly last week, as conventional and government activity were each up around one percent,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Furthermore, in continuation of the gradual growth trend seen throughout the first half of 2019, purchase activity was almost 10 percent higher than a year ago.
“A still-strong job market, improving affordability and lower mortgage rates continue to support growth,” Kan adds.
The refinance share of mortgage activity decreased to 51.0% of total applications, down from 51.5% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.2% of total applications.