Mixed Signals Net Decrease in Mortgage Applications Activity This WeekBy RISMedia Staff
The Mortgage Bankers Association is pointing to a combination of economic and geopolitical forces ultimately netting a decrease in mortgage application activity this week.
The latest Market Composite Index from the MBA—its measure of mortgage loan activity volume and includes purchases and refinances—shows application activity decreasing 3.8% on a seasonally adjusted basis from a jump last week of 10.8%. On an unadjusted basis, the Index decreased 5% compared with the previous week. “Last week’s CPI data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week,” said Mike Fratantoni, MBA’s SVP and chief economist. “The net impact reduced mortgage application activity, with both purchase and refinance application volume down for the week by 3 percent and 5 percent, respectively. Purchase applications continue to run modestly ahead of last year, with last week’s volume up 3 percent on an annual basis, with stronger growth in conventional purchase volume while government purchase volume remained subdued.” The refinance share of mortgage activity increased to 40.3% of total applications from 40.2% the previous week, MBA reported. The adjustable-rate mortgage (ARM) share of activity decreased to 8.5% of total applications. Government-backed loans were mixed again this week: The FHA share of total applications increased to 17.5% from 17.4% the week prior. The VA share of total applications decreased to 12.9% from 13.4% the week prior, and the USDA share of total applications remained unchanged at 0.4% the week prior. To view the full report, click here. |
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