“Most mortgage rates moved lower last week, with the 30-year fixed rate edging down slightly to 6.43%,” said Joel Kan, MBA’s vice president and deputy chief economist.
Though the rate change was minimal, it continued the downward trend seen in recent weeks, making home loans slightly more affordable. The uptick in mortgage apps was also driven by purchase applications, which saw a 3% week-over-week increase.
“Purchase applications increased more than 3% over the week and are inching closer to last year’s levels, with government purchase applications leading the increase,” Kan said.
While refinancing applications dipped slightly by 0.3% compared to the previous week, they are still 94% higher than the same week a year ago. Many homeowners continue to refinance to take advantage of lower rates, despite the slight slowdown.
“Refinance applications were slightly down but continued to show strong annual gains as borrowers with higher rates have been refinancing to lower their monthly payments,” Kan added. “Similar to purchase activity, refinance activity has picked up across the various loan types.
