Mortgage demand dipped last week as mortgage rates reached their highest levels since late 2023. Applications decreased by 2.7% on a seasonally adjusted basis during the week ending April 19, according to the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey.
“Mortgage rates continued to move higher last week, reaching their highest levels since late 2023 and putting a damper on applications activity. The 30-year fixed rate increased for the third consecutive week to 7.24%, the highest since November 2023,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
“Purchase applications declined, as home buyers delayed their purchase decisions due to strained affordability and low supply. The ARM share of applications increased to 7.6%, consistent with the upward trend in rates, as buyers look to reduce their potential monthly payments.”
Purchase loan application volume fell by 1% from one week earlier, while refinance volume dropped by 6% from the prior week. The refinance share of mortgage activity decreased to 30.8% of total applications, down from 32.1% the previous week.
The MBA survey showed that the average mortgage rate for 30-year fixed loans with conforming balances ($766,550 or less) increased to 7.24%, up from 7.13% last week. Meanwhile, rates on jumbo loans (balances greater than $766,550) also increased week over week to 7.45%, up from 7.40%.
On Wednesday, HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.52%, up from 7.29% one week earlier.
