As mortgage and refinance rates slip, applications generally increase, which we saw once again last week. According to the Mortgage Bankers Association, mortgage applications increased 5.3 percent from one week earlier, for the week ending April 7, 2023.
The Refinance Index increased 0.1 percent from the previous week and was 57 percent lower than the same week one year ago.
The refinance share of mortgage activity decreased to 27 percent of total applications from 28.6 percent the previous week.
“Incoming data last week showed that the job market is beginning to slow, which led to the 30-year fixed rate decreasing to 6.30 percent – the lowest level in two months,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Prospective homebuyers this year have been quite sensitive to any drop in mortgage rates, and that played out last week with purchase applications increasing by 8 percent. Refinance application volume was a mixed bag with total volume essentially flat, conventional volume down for the week, but VA refinance volume increasing. The level of refinance activity remains almost 60 percent below last year, as most homeowners are currently locked in at much lower rates.”