Mortgage applications increased last week for the fifth time in six weeks. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis compared to the previous week and was up 6.0 percent before adjustment. Applications for home purchases accounted for nearly all of the gains, but the Refinance Index did eke out a 0.1 percent increase. Refinance activity is now 57 percent lower than the same week one year ago. Refinancing accounted for 27.0 percent of applications compared to 28.6 percent during the last week of March. [refiappschart] The seasonally adjusted Purchase Index increased 8.0 percent and was 9.0 percent higher on an unadjusted basis. The unadjusted index was 31 percent lower than in the first week of April in 2022. [purchaseappschart] “Incoming data last week showed that the job market is beginning to slow, which led to the 30-year fixed rate decreasing to 6.30 percent – the lowest level in two months,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Prospective homebuyers this year have been quite sensitive to any drop in mortgage rates, and that played out last week with purchase applications increasing by 8 percent. Refinance application volume was a mixed bag with total volume essentially flat, conventional volume down for the week, but VA refinance volume increasing. The level of refinance activity remains almost 60 percent below last year, as most homeowners are currently locked in at much lower rates.”
