According to the Mortgage Bankers Association, mortgage applications increased 6.5 percent from one week earlier. On an unadjusted basis, the Index increased 7 percent compared with the previous week.
The Refinance Index increased 5 percent from the previous week and was 74 percent lower than the same week one year ago. The unadjusted Purchase Index increased 8 percent compared with the previous week and was 38 percent lower than the same week one year ago.
“Treasury yields declined late last week, as market concerns over bank closures and the potential for broader ripple effects triggered a flight to safety in Treasury bonds. This decline pushed mortgage rates for all loan types lower, with the 30-year fixed rate decreasing to 6.71 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Home-purchase applications increased for the second straight week but remained almost 40 percent below last year’s pace. While lower rates should buoy housing demand, the financial market volatility may cause buyers to pause their decisions.”
Added Kan, “Refinance activity remained more than 70 percent behind last year’s level, as rates are still more than two percentage points higher than a year ago. The dip in rates did bring some borrowers back as evidenced by the 5 percent increase in refinance applications last week.”
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