The
index
decreased
11%
on
an
unadjusted
basis

compared
with
the
previous
week.

The

refinance
index
decreased
20%
from
the
previous
week,
but
was
still
43%
higher
than
the
same
week
one
year
ago.
The
refinance
share
of
mortgage
activity
decreased
to
37.3%
of
total
applications
from
41.3%
the
previous
week.

Joel
Kan,
MBA’s
vice
president
and
deputy
chief
economist,
attributed
the
decline
to
the
second
straight
week
of
climbing

rates,
as
the
average
contract
interest
rate
for
30-year
fixed-rate
mortgages
with
conforming
loan
balances
increased
to
6.90%
from
last
week’s
6.81%.

“These
higher
rates
drove
a
20%
drop
in
refinance
applications,
especially
for
higher
balance
loans,
with
the
average
loan
size
falling
substantially.
The
refinance
share
of
applications
at
37.3%
was
the
lowest
since
January,”
he
said.

The
seasonally
adjusted
purchase
index
decreased
7%
from
one
week
earlier.
The
unadjusted
purchase
index
decreased
6%
compared
with
the
previous
week
and
was
6%
higher
than
the
same
week
one
year
ago.

“Overall
mortgage
application
activity
declined
last
week,
as
rates
increased
to
their
highest
level
in
two
months.
The
30-year
fixed
rate
rose
for
the
second
straight
week
to
6.9%,
an
almost
30-basis-point
increase
over
two
weeks,”
said
Kan.
“Similar
to
the
previous
week,
economic
uncertainty
and
rate
volatility
impacted
prospective
homebuyers
as
we
saw
a
7%
decline
in
purchase
applications.
Both
conventional
and
government
purchase
activity
fell
relative
to
the
week
before,
but
the
overall
level
of

purchase
applications
was
still
6%
higher
than
a
year
ago.”

The

adjustable-rate
mortgage
(ARM)
share
of
activity,
which
reached
its
highest
level
recorded
since
November
2023
last
week
at
9.6%,
decreased
to
7.5%
of
total
applications.

By
product,
the


FHA
share
of
total
applications
increased
to
16.7%
from
15.8%
the
week
prior.
The


VA
and


USDA
shares
of
total
applications
both
declined,
decreasing
to
13.4%
from
13.7%
and
to
0.4%
from
0.5%
the
week
prior,
respectively.

All
mortgage
types
saw
rate
increases
except
for
5/1
ARMs,
which
decreased
to
6.01%
from
6.11%.

The
average
contract
interest
rate
for
30-year
fixed-rate
mortgages
with
jumbo
loan
balances
increased
to
6.90%
from
6.84%%
while
the
average
contract
interest
rate
for
30-year
fixed-rate
mortgages
backed
by
the
FHA
increased
to
6.56%
from
6.52%.
The
average
contract
interest
rate
for
15-year
fixed-rate
mortgages
increased
to
6.20%
from
6.11%.