While mortgage rates have hovered in a tight range, refinancing continues to lag. Refinance applications fell 6% week over week, although it still sits 57% higher than the same time last year. In dollar volume, refinance application volume fell 4.5%, according to Fannie Mae.
The refinance share of total mortgage activity also declined, falling to 38.6% of all applications, down from 40.4% the week prior.
Meanwhile, purchase activity held up slightly better. MBA’s seasonally adjusted purchase applications index rose 2% from the previous week, with the unadjusted index also increasing 2%, and now standing 9% higher than a year ago.
“Last week’s level of purchase applications was its highest since the end of January, driven by a 3% increase in conventional purchases, while government purchase applications were down 2%,” Kan explained.
He added that overall purchase activity has shown year-over-year growth for more than two months, supported by a gradual increase in the number of existing homes for sale.