Mortgage demand fell for the seventh week in a row as refis continue to plummet, according to the Mortgage Bankers Association’s weekly survey.
- The Purchase Index was actually up 1.0% for the week but is still down 41.0% when compared to last year.
- The Refinance Index was down 4.0% for the week and is now down 87.0% when compared to last year.
Breaking It Down. The refinance share of mortgage activity fell half a point to 28.1% of total applications and The adjustable-rate mortgage share of activity increased to 12.0% of total applications.
Mortgage Rates. After a slight reprieve last week, the 30-year fixed continued its climb with an 8 basis point jump to 7.14% which is now a whopping 398 basis points higher than one year ago.
- The 15-year fixed increased 3 basis points to 6.40% and the 5/1 ARM was up 8 basis points to 5.87%.
Analysis. Joel Kan, MBA economist, said in a release that refi volume hit a 22-year low. “Purchase applications increased for the first time after six weeks of declines but remained close to 2015 lows, as homebuyers remained sidelined by higher rates and ongoing economic uncertainty. Refinances continued to fall, with the index hitting its lowest level since August 2000.”