Rates may have been on the rise the past few weeks, but so to were mortgage and refinance applications.
According to the latest numbers out from the Mortgage Bankers Association, mortgage applications increased 3.7 percent from one week earlier for the week ending April 21, 2023. On an unadjusted basis, the Index increased 5 percent compared with the previous week.
The Refinance Index increased 2 percent from the previous week and was 51 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 5 percent from one week earlier.
“Both conventional and government home purchase applications increased last week. However, activity was still nearly 28 percent below last year’s pace, as high mortgage rates and low supply have slowed the market this year, even as home-price growth has decelerated in many markets across the country,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Refinance applications also increased last week but remained at half of last year’s levels. Although incoming data points to a slowdown in the U.S. economy, markets continue to expect that the Fed will raise short-term rates at its next meeting, which have pushed Treasury yields somewhat higher. As a result of the higher yields, mortgage rates increased for the second straight week to their highest level in over a month, with the 30-year fixed rate now at 6.55 percent.”
The refinance share of mortgage activity decreased to 26.8 percent of total applications from 27.6 percent the previous week.