Mortgage application activity slowed during the week ending June 12, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 3.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index dropped by 5%.
The seasonally adjusted Purchase Index was 3% below the level recorded one week earlier. The unadjusted Purchase Index was 5% from the previous week and was 3% higher than the same week one year ago.
The Refinance Index fell by 5% from the previous week, but it was also 17% higher than the same week one year ago. The refinance share of mortgage activity inched up to 40.3% of total applications from 40.2% in the previous week.
Among the federal programs, the FHA share of total applications has a slight uptick to 17.5% from 17.4% the week prior while the VA share of total applications decreased to 12.9% from 13.4% and the USDA share of total applications remained unchanged from the week prior at 0.4%.
“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 senior vice president and chief economist. “The net impact reduced mortgage application activity, with both purchase and refinance application volume down for the week by 3% and 5%, respectively. Purchase applications continue to run modestly ahead of last year, with last week’s volume up 3% on an annual basis, with stronger growth in conventional purchase volume while government purchase volume remained subdued.”
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