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Mortgage applications rise modestly as purchase demand offsets refinance slump
The MBA said total application volume increased 0.8% for the week ending August 28, while refinancing fell 1% and stayed 19% below year-ago levels.
Mortgage application activity showed a modest pickup last week, driven by stronger purchase demand that offset another decline in refinancing, as mortgage rates hit their highest level in four weeks, according to Mortgage News Daily.
The Mortgage Bankers Association reported total application volume rose 0.8% on a seasonally adjusted basis for the week ending August 28. Purchase applications increased 2% from the prior week, while activity remained 0.2% lower than the same week a year ago.
Refinance demand moved lower, with the Refinance Index down 1% from the previous week and 19% below year-ago levels. Refinances also slipped to 41.8% of overall applications from 42.0% the week before.
Borrowers continued adjusting to the rate environment, Mortgage News Daily reported. The share of adjustable-rate mortgage activity climbed to 8.0%, its highest level in five weeks, as the average rate for a 5/1 ARM fell to 5.94%, while several fixed and jumbo rates edged up, including 30-year fixed at 6.79% and jumbo 30-year at 6.76%.