Mortgage applications decreased 1.2 percent for the week ending August 19, compared to the week prior, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Refinance apps were down 3 percent week-over-week but the annual numbers are particularly telling.
According to the MBA, the unadjusted Purchase Index decreased was 21 percent lower than the same week one year ago, while the Refinance Index was 83 percent lower than the same week one year ago.
“Mortgage applications continued to remain at a 22-year low, held down by significantly reduced refinancing demand and weak home purchase activity. Last week’s purchase results varied, with conventional applications declining 2 percent and government applications increasing 4 percent, which is potentially a sign of more first-time homebuyer activity,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The average purchase loan size continued to trend lower, as purchase activity at the high end of the market is weakening.
The MBA notes that mortgage rates increased for all loan types last week, with the benchmark 30-year fixed rate jumping 20 basis points to 5.65 percent—the highest in nearly a month.