Mortgage applications were up 2.1% and 4.2% respectively over the past two weeks.
The 6.9% decline has brought application volume to its lowest level in nearly 18 months, according to Mike Fratantoni, senior vice president and chief economist at the MBA. Purchase requests for conventional loans also fell to their lowest level since May 2020.
“Mortgage rates were volatile last week as investors sought to gauge the Federal Reserve’s upcoming moves amid several different signals – including rising inflation, mixed labor data, strong consumer spending, and a constrained housing market that has fueled rapid housing-price growth,” said Fratantoni.
“When the economy advances and Inflation stays high, we expect that Prices will continue to increase gradually in the second half of the year, ”added Sam Khater, Freddie Mac’s chief economist. “For those homeowners who have not yet refinanced – and there remain many borrowers who could benefit – now is the right time.”
The refinancing share of total mortgage applications fell from 62.5% in the previous week to 61.9%. On an unadjusted basis, the Market Composite Index was down 7% compared to the previous week. The seasonally adjusted purchasing index also fell by 5% compared to a week earlier.
The FHA Share in total mortgage applications remained unchanged at 9.5% from the previous week, and the become The share of total mortgage applications also fell from 11.2% to 10.5%.
Here is a more detailed breakdown of this week’s mortgage application dates:
- The average contract rate on 30-year fixed-rate mortgages with corresponding loan balances ($ 548,250 or less) increased from 3.18% to 3.20%.
- The average contract rate on 30-year fixed-rate mortgages with jumbo loan balances (over $ 548,250) decreased from 3.26% to 3.23%
- The average contract rate for 30-year fixed-rate mortgages decreased from 3.21% to 3.19%
- The average contract rate for 15-year fixed-rate mortgages also fell from 2.58% to 2.56%
- The average contract rate for 5/1 ARMs rose to 2.98% after staying unchanged at 2.69% for the past two weeks, with the points falling from 0.26 (including the subscription fee) for 80% LTV loans