Mortgage applications in the US increased last week as refinancing activity improved while home purchase demand edged lower, the Mortgage Bankers Association said Wednesday.
The market composite index, which measures loan application volume, increased 1% in the week ended June 19. On an unadjusted basis, the index decreased 10% compared with the previous week. This week's results include an adjustment for the Juneteenth holiday.
The refinance index increased 3% from the prior week, while the seasonally adjusted purchase index declined 1%.
"Mortgage rates [were] changed little over the course of last week, despite the more hawkish tone from the FOMC at its June meeting," said Mike Fratantoni, the MBA's chief economist."Purchase application volume edged slightly lower, while refinance activity posted modest gains."
"Despite the elevated mortgage rates and overall economic uncertainty, mortgage application volume is running 8% above year-ago levels," Fratantoni said.
The average contract interest rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less decreased to 6.59% from 6.6%. For loan balances higher than that amount, the rate decreased to 6.52% from 6.62% .
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.02%.
The share of Federal Housing Administration loans, which are often used by first-time home buyers and can involve smaller down payments, ticked up to 17.9% of total applications from 17.5% the week prior.
