Mortgage application volume increased 3.7% during the week ended February 2, despite the average rate for a 30-year fixed-rate mortgage rising to 6.80%, up from 6.78% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 12% from the previous week and were up 1% compared with the same week one year ago.
Applications for purchases decreased 1% from one week earlier and were down 19% compared with the same week one year ago.
“Mortgage rates have stayed close to where they started the year, despite swings in Treasury yields because of slowing inflation offset by stronger than expected readings on the job market. The 30-year fixed mortgage rate was 6.8 percent, a slight increase from last week,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Rates at these levels have not prompted much of a reaction in the refinance market, as most homeowners have mortgages with much lower rates. Purchase activity has been strong to start 2024 compared to the final quarter of 2023. However, activity is still weaker than a year ago because of low housing supply.”
The refinance share of mortgage activity increased to 35.4% of total applications, up from 34.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.4% of total applications.
Photo: Ian MacDonald
