Purchase activity picked up slightly, while refinance applications decreased for the fourth consecutive week. The seasonally adjusted purchase index increased by 1% from the previous week, although it remained 13% lower than the same period last year.
Refinance applications, on the other hand, continued their downward trend for the fourth consecutive week, with a 2% decrease compared to the prior week. However, refinance applications remained 28% higher year-over-year.
Read next: “Problematic” home seller form under scrutiny
“Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications,” Joel Kan, vice president and deputy chief economist at MBA, said in the embargoed report emailed to MPA. “Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates.”
Kan attributed the flat application activity to a consistently high average contract interest rate for 30-year fixed-rate mortgages.
Source: mpamag.com