Mortgage application volume increased 5.4% during the week ended September 15, as the average rate for a 30-year fixed-rate mortgage increased to 7.31%, up from 7.27%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances inexplicably surged 13% from the previous week but were down 29% compared with the same week one year ago.
Applications for purchases increased 12% compared with the previous week but were down 26% from a year ago.
“Mortgage applications increased last week, despite the 30-year fixed mortgage rate edging back up to 7.31 percent – its highest level in four weeks,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Purchase applications increased for conventional and FHA loans over the week but remained 26 percent lower than the same week a year ago, as homebuyers continue to face higher rates and limited for-sale inventory, which have made purchase conditions more challenging. Refinance applications also increased last week but are still almost 30 percent lower than the same week last year.”
Kan adds that the average loan size on a purchase application was $416,800, the highest level in six weeks.
“Home prices in many markets have been supported by low inventory and resilient housing demand for available homes,” he says.
The refinance share of mortgage activity increased to 31.6% of total applications, up from 29.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.2% of total applications.
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