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Mortgage applications are stable even if refis increase

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A drop in mortgage rates led to a slight increase in refinance requests last week, returning to a 30% share of the total, according to the latest Mortgage Bankers Association (MBA) for the week ending June 24.

Overall, mortgage applications were up 0.7% on a seasonally adjusted basis from the previous week, although they were 49.4% lower than the same week in 2021.

“Mortgage rates continue to experience significant fluctuations. After rising 65 basis points over the past three weeks, the 30-year fixed rate fell 14 basis points last week,” said Joel Kan, associate vice president of economic and industry forecasts for the group. of Commerce, in a press release. “The fall in mortgage rates led to a slight increase in refinancing, driven by a slight increase in conventional loans.”

Refis were up 1.9% from the previous week and down 74.5% year over year. Meanwhile, the seasonally adjusted shopping index was relatively flat, rising just 0.12% from the previous week, but down 4.7% from the same week a year ago.

“Buying activity has weakened in recent months due to rapidly rising mortgage rates, high house prices and growing economic uncertainty,” Kan said. “Purchase requests were essentially flat last week, but were supported by a 6% increase in government loans.”

Kan noted that the average purchase loan amount, after hitting a record high of $460,000 in March 2022, fell to $413,500 last week.

Tuesday, another clue, Black KnightOptimal Blue OBMMI had rates for a 30-year fixed rate mortgage at around 5.93%.

Refis accounted for 30.3% of total requests last week, down from 29.7% the previous week, according to the survey. The share of variable rate mortgages (ARMs) in applications fell from 10.6% to 10.1%, still demonstrating continued popularity among borrowers. The average interest rate for a 5/1 ARM fell to 4.64% from 4.78% the previous week, according to the MBA.

The FHA share of total claims remained unchanged at 12%. During this time, the Virginia share rose from 10.7% to 11.2%. The USDA the share of total claims rose to 0.6% from 0.5% the previous week.

The trade group estimates that the average 30-year fixed-rate mortgage for conforming loans ($647,200 or less) fell to 5.84% from 5.98% the previous week. For jumbo mortgages (greater than $647,200), it went from 5.49% to 5.42%.