Rate paralysis drags mortgage applications lower again
The VA share of total applications increased to 13.0% from 12.9% the prior week, a modest but notable shift as borrowers sought any path to a more competitive rate.
“Government purchase volume increased modestly, led by a 5% gain in VA purchase applications, while conventional purchase activity declined. Refinance application volume was down 4%, as homeowners saw little enticement to act with rates still elevated,” said Mike Fratantoni, senior vice president and chief economist at the MBA.
The refinance share of total mortgage activity slipped to 40.6% from 41.4% the previous week.
Adjustable-rate mortgages accounted for 7.8% of applications. Jumbo 30-year fixed rates edged down to 6.50% from 6.52%, while the 15-year fixed rate dipped to 5.99% from 6.00%.
The five-year ARM averaged 5.84%, up from 5.79%.
