On an unadjusted basis, the index increased 1% compared with the previous week.
The seasonally adjusted purchase index was a bright spot this week, increasing 2% from one week earlier. The unadjusted purchase index increased 2% compared with the previous week and was 18% higher than the same week one year ago.
“Last week saw steadier mortgage rates, as the FOMC meeting played as predicted, and market movements led to a small two-basis point increase in the 30-year conforming rate to 6.86%,” said Mike Fratantoni, MBA’s SVP and chief economist. “Refinance volume was little changed for the week, with a small increase in government refinances and a decrease in conventional refinances. The news for the week was the growth in purchase applications, up 2.3% and almost 18% higher than last year’s pace. Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.”
Added Fratantoni, “There was a notable gain in government purchase applications, up almost 5% for the week and 40% on an annual basis.”
Meanwhile, refinance activity slowed, with the index decreasing 0.4% from the previous week. Still, the index was 44% higher than the same week one year ago. The refinance share of mortgage activity decreased to 36.4% of total applications from 37.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications and the USDA share of total applications remained unchanged at 0.5% from the week prior.
The FHA share of total applications increased to 17.4% from 16.4% the week prior. The VA share of total applications increased to 13.4% from 13.3% the week prior.
While the average contract interest rate for 30-year fixed-rate mortgages increased to 6.86%, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances saw a small decrease to 6.85% from 6.86%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.59% from 6.56%, while the average contract interest rate for 5/1 ARMs increased to 6.09% from 5.97%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.12% from 6.17%.
