Mortgage application volume increased 3.3% during the week ended April 12, driven mainly by a 5% increase is purchase applications, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Compared with the same week one year ago, applications for purchases were up 6%.
Applications for refinances increased 0.5% compared with the previous week and were up 11% compared with the same week one year ago.
The increase in applications came despite a jump in mortgage interest rates: The average rate for a 30-year fixed-rate mortgage was 7.13%, up from 7.01% the previous week.
“Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. Mortgage rates increased across the board, with the 30-year fixed-rate at 7.13 percent – reaching its highest level since December 2023.”
“Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise,” Kan says. “Purchase applications drove most of the increase, but remain at low levels of around 10 percent behind last year’s pace. Refinance applications increased very slightly, driven by a 3 percent gain in conventional applications.”
The refinance share of mortgage activity decreased to 32.1% of total applications, down from 33.3% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.3% of total applications.
Photo: Romain Dancre
