The seasonally adjusted purchase index increased 1% from one week earlier whereas the unadjusted purchase Index increased 7% during the same period. The unadjusted purchase index was 2% higher year-over-year.
“Mortgage application volume was little changed last week, but there was a small increase in conventional purchase volume, which brought the level of total purchase volume up almost 2% above last year at this time,” said Mike Fratantoni, MBA’s SVP and chief economist. “Mortgage rates remained near 7%, a key psychological level, which likely continues to slow the pace of activity for both refinances and purchases. Incoming economic data are likely to keep the Federal Reserve on hold for now, while uncertainties about economic policy are likely to keep longer-term rates, including mortgage rates, steady at these levels.”
The refinance share of mortgage activity decreased to 40.4% of total applications from 42.7% the previous week, indicating a shrinking desire to refinance. However, the adjustable-rate mortgage (ARM) share of activity increased to 5.5% of total applications.
The FHA share of total applications saw a small decline to 16.5% from 16.9% the week prior. The VA share of total applications decreased to 14.6% from 15.7% the week prior. Lastly, the USDA share of total applications decreased to 0.4% from 0.5% the week prior.
