Mortgage applications decrease in latest MBA weekly survey

Read more: Mortgage applications slip

“Mortgage rates fell for the fourth time in five weeks, as concerns of weaker economic growth and the recent stock market sell-off drove Treasury yields lower,” Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, said.

“Mortgage applications decreased to [their] lowest level since December 2018, as the purchase market continues to struggle with supply and affordability challenges. With the 30-year fixed rate at 5.33%, the refinance market continues to shrink, led by larger decreases last week for FHA and VA refinance applications. The refinance index was 75% below last year’s level, when rates were more than 200 basis points lower.”

Kan added that purchase applications last week were 14 percent lower than last year, with more activity in the larger loan sizes. “Demand is high at the upper end of the market, and supply and affordability challenges are not as detrimental to these borrowers as they are to first-time buyers,” he said.

The refinance share of mortgage activity decreased to 31.5% of total applications from 32.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.7% of total applications.