Read more: Mortgage originations plummet – what can you do about it?
Both refinance and purchase application volumes also edged down from the week prior. MBA’s refinance index declined by 8%, and the purchase index decreased by 4.8%.
“Purchase applications decreased 5% to its slowest pace in a month, as buyers remain wary of this rate volatility, but also as for-sale inventory in many parts of the country remains scarce,” added Kan. “Refinance applications accounted for 27% of all applications and dropped almost 8% last week. Most borrowers have lower rates on their mortgages, and those who are in the market are extremely rate sensitive.”
Of total applications, the refinance share of mortgage activity dipped six basis points to 27.4%, and the adjustable-rate mortgage share of application volume slipped to 6.5%.
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