Real Estate
Home›Real Estate›Mortgages›Mortgage applications slip as higher rates curb homebu…
Mortgage applications slip as higher rates curb homebuyer demand
Purchase applications fell 2.0% week over week, while refinance activity edged up but stayed 18.0% below year-ago levels.
Mortgage application activity was little changed last week, with higher mortgage rates weighing on purchase demand, according to Mortgage News Daily citing Mortgage Bankers Association data for the week ending August 14.
Total application volume declined 0.4% on a seasonally adjusted basis. Purchase applications fell 2.0% from the previous week and were 3.0% below the same week a year ago, as affordability difficulties resurfaced and led some buyers to delay.
MBA Deputy Chief Economist Joel Kan said affordability has reemerged as a factor, driven by the impact of higher mortgage rates on monthly payments. Refinance applications provided a modest offset, with the Refinance Index up 2.0% from the prior week, though refinance activity remained 18.0% lower than a year ago.
Rates were mixed across loan types. The average contract rate for a 30-year fixed mortgage held at 6.77%, jumbo 30-year loans rose to 6.71% from 6.68%, the 15-year fixed rate slipped to 6.08% from 6.10%, and the 5/1 ARM fell to 5.94% from 5.99%. The refinance share of total mortgage activity increased to 41.9% from 40.7%, while the ARM share decreased to 7.7% from 7.9%.