Mortgage application volume decreased 2.4% on an adjusted basis during the week ended June 10, with applications for refinances falling 1.0% and applications for purchases falling 5.0% compared with the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The previous week’s report included an adjustment for the Memorial Day holiday.
On an unadjusted basis, volume increased 21% compared with the previous week. Applications for purchases increased 17%, on an unadjusted basis, compared with the previous week and increased 16% compared with the same week one year ago.
The refinance share of mortgage activity increased to 55.3% of total applications from 53.8% the previous week.
The drop in applications comes despite the fact that mortgage rates remained well below 4%. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.79%, down from 3.83% the previous week.
The average rate for a 30-year jumbo FRM was 3.75%, down from 3.81%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.61%, down from 3.71%.
The average rate for a 15-year FRM was 3.06%, down from 3.11%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.87%, down from 2.96%.
The ARM share of activity increased to 5.3% of total applications.
Looking at volume by loan type, applications for mortgages backed by the FHA were 11.8% of all applications – down from 13.0% the week prior. The Veterans Affairs share of total applications was 11.1%, down from 11.5%. The U.S. Department of Agriculture share of total applications was 0.6%, down from 0.7% the week prior.