“Mortgage rates inched higher for the second straight week, with the 30-year fixed-rate up to 6.69%,” said Joel Kan, MBA’s vice president and deputy chief economist. “While this was not a significant increase, it was enough to cause a pullback in refinance applications.
Purchase applications had their strongest week in over a month, up 2%, and the average loan size increased to its highest level in two months at $433,400. Prospective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling home-price growth in many parts of the country.”
The refinance share of mortgage activity slipped to 45.3% of total applications, down from 46.1% the previous week. Adjustable-rate mortgages (ARMs) made up 8.4% of activity, also down from a week earlier.
Government-backed loans showed mixed results. The Federal Housing Administration (FHA) share held steady at 19.1%, while the Department of Veterans Affairs (VA) share edged down to 13.3% from 13.4%. The US Department of Agriculture (USDA) share slipped to 0.5% from 0.6%.
Interest rates showed modest shifts across loan types. The average contract rate for 30-year fixed-rate mortgages with conforming balances rose to 6.69%, while jumbo loans increased to 6.67%. FHA-backed 30-year mortgages eased to 6.35%, and 15-year fixed mortgages climbed to 6.03%. The rate for 5/1 ARMs decreased to 5.94%.