Applications were down 3.7% from the week ending April 2, with rising mortgage rates and low inventory contributing to the slowdown and leading to a decline in purchase mortgage activity, said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
“The third straight week of declining purchase activity is a sign that rising home prices and tight supply is constraining home sales – especially in the lower price tiers,” Kan said. “Purchase applications were still above last year’s pandemic-impacted low point, but fell behind the level of activity seen the same week in 2019.”
Refinance activity decreased, as well. It’s the ninth decrease in the past 10 weeks, Kan said, to 59.2% of total mortgage applications from 60.3% from the previous week.
“Rates have gone from 2.92% to 3.27% over the same period,” he said. “Last week’s index level was the lowest in over a year, as mortgage rates continue to trend higher. Many borrowers have either already refinanced at lower rates or are unwilling – or unable – to refinance at current rates.”
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The seasonally adjusted purchase index and the unadjusted purchase index both decreased 1% from one week earlier, but the unadjusted purchase index was still 51% higher than the same week one year ago.
The FHA share of total mortgage applications increased to 10.8% from 10.2% from the week prior. However, the VA share of total mortgage applications decreased to 12.1% from 13.38% the week prior.
Here is a more detailed breakdown of this week’s mortgage application data:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.27% from 3.36%
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.35% from 3.41%
- The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.24% from 3.36%
- The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.67% from 2.74%
- The average contract interest rate for 5/1 ARMs increased to 2.6% from 2.92%