The
refinance
index
continued
to
rise,
increasing
23%
from
the
previous
week.
It
was
8%
higher
than
the
same
week
one
year
ago.
The
refinance
share
of
mortgage
activity
increased
to
46.5%
of
total
applications
from
41.5%

last
week.

“The
30-year
fixed
mortgage
rate
declined
to
6.67%
last
week,
which
spurred
the
strongest
week
for
refinance
activity
since
April.
Borrowers
responded
favorably,
as
refinance
applications
increased
23%,
driven
mostly
by
conventional
and
VA
applications,”
said

Joel
Kan,
MBA’s
vice
president
and
deputy
chief
economist.
“Refinances
accounted
for
46.5%
of
applications,
and
as
seen
in
other
recent
refinance
bursts,
the
average
loan
size
grew
significantly
to
$366,400.
Borrowers
with
larger
loan
sizes
continue
to
be
more
sensitive
to
rate
movements.”

Added
Kan,
“Given
the
relative
attractiveness
of
ARM
rates
compared
to
fixed
rate
loans,
ARM
applications
increased
25%
to
their
highest
level
since
2022,
and
the
ARM
share
of
all
applications
was
almost
10%.
However,
lower
rates
were
not
enough
to
entice
more
homebuyers
back
into
the
market,
as
purchase
applications
were
only
up
around
1%
over
the
week,
although
still
stronger
than
last
year’s
pace.”

The
unadjusted
purchase
index
increased
1%
compared
with
the
previous
week
and
was
17%
higher
than
the
same
week
one
year
ago.

Looking
at
the
share
of
applications,
the
adjustable-rate
mortgage
(ARM)
share
of
activity
increased
to
9.6%
of
total
applications.
The


FHA
share
of
total
applications,
meanwhile,
decreased
to
18.4%
from
18.5%
the
week
prior.

The


VA
share
of
total
applications
increased
to
14.2%
from
13.3%
the
previous
week,
and
the


USDA
share
of
total
applications
remained
unchanged
at
0.5%.

While
the
average
contract
interest
rate
for
30-year
fixed-rate
mortgages
with
conforming
loan
balances
decreased,
interest
rates
for
30-year
fixed-rate
mortgages
with
jumbo
loan
balances
increased
to
6.70%
from
6.65%.

FHA
interest
rates
decreased
to
6.40%
from
6.47%,
and
the
average
contract
interest
rate
for
15-year
fixed-rate
mortgages
also
decreased
to
5.93%
from
6.03%.

The
average
contract
interest
rate
for
5/1
ARMs
decreased
to
5.80%
from
6.06%.