Mortgage applications dip as rate increases in latest MBA survey

Mortgage applications dipped 0.9% on a week-over-week, seasonally adjusted basis in the week ended April 30, while the 30-year fixed mortgage rate rose to 3.18% from 3.17%, the Mortgage Bankers Association said, citing its Market Composite Index.

On an unadjusted basis, the index slid 1%.

The refinance index, meanwhile, rose 0.1% from the previous week and was down 17% from the same week a year ago.

The seasonally adjusted purchase index slid 3% from the previous week, while the unadjusted purchase index was down 2% on a weekly basis and up 24% on yearly basis.

MBA Associate Vice President of Economic and Industry Forecasting Joel Kan called the results a “mixed bag” in a press release.

“Both conventional and government purchase applications declined, but average loan sizes increased for each loan type,” he said. “This is a sign that the competitive purchase market, driven by low housing inventory and high demand, is pushing prices higher and weighing down on activity. The higher prices are also affecting the mix of activity, with stronger growth in purchase loans with larger-than-average balances.”

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