Mortgage application volume inched up 0.1% on an adjusted basis during the week ended April 5, as the average rate for a 30-year mortgage increased to 7.01%, up from 6.91% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 10% compared with the previous week – which included the Easter holiday – and were up 4% compared with the same week one year ago.
Applications for purchases decreased 5% compared with the previous week and were down 23% compared with the same week one year ago.
“Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency.
“Unexpectedly strong employment data released last week further added to the upward pressure on rates,” Kan adds. “The 30-year fixed rate increased to 7.01 percent, the highest in over a month. Purchase applications were down almost five percent to the lowest level since the end of February, but refinance applications were up 10 percent, driven particularly by VA refinance applications.”
The refinance share of mortgage activity increased to 33.3% of total applications, up from 30.3% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.9% of total applications.
Photo: Scott Graham