Mortgage applications fell a seasonally adjusted 2.6% in the week ended June 28, according to data released Wednesday. Mortgage Bankers Association (Master of Business Administration).
The trade group cited rising mortgage rates as the main reason. according to house lineThe average 30-year conventional loan rate was 7.12% on Wednesday, up from 7.06% a week ago, while the average 15-year conventional loan rate rose to 6.96% from 6.70% during the same period, according to the Mortgage Rate Center.
Purchase applications were the main reason for the decline in the overall index. After seasonally adjusting, they fell 3% week-on-week and 12% year-on-year. Refinancing applications were down 2% from the previous week, but were up 29% year over year and now account for 35.7% of all activity.
“Mortgage rates moved higher last week, topping the 7% mark, although the latest inflation data kept expectations of a rate cut from the Federal Reserve later this year alive,” said Mike Fratantoni, senior vice president and chief economist at MBA.
“Despite increases in new and existing inventory over the past few months, purchase applications declined in the last week of June. Refinancing activity also remained subdued – although applications for traditional refinance loans increased slightly.
MBA’s survey, which covers 75 percent of all retail residential mortgage applications in the United States, found that the average contract interest rate for 30-year fixed-rate conforming loans (with balances of $766,550 or less) increased 10 basis points to 7.03 percent. day of the week. Adjustable-rate mortgages (ARMs) fell to 6% of all application activity.
federal housing administration (FHA) loans accounted for 13.1% of activity, unchanged for the week. U.S. Department of Veterans Affairs The share of (VA) loans fell from 13.8% to 12.9%, while U.S. Department of Agriculture (USDA) loan ratio dropped to 0.3%.
