The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. advanced 0.5 per
cent in the week ended August 23, following a 10.1 per cent tumble the week before.
According to
the MBA’s data, last week’s gain in mortgage applications reflected a 0.9 per cent rise in mortgage applications to
purchase a home that was partly offset by a 0.1 per cent slip in mortgage
refinance applications.
The report also
revealed that the average fixed 30-year mortgage rate fell from 6.50 per cent to 6.44
per cent, the lowest level since the week that ended April 14, 2023 (6.43 per cent). Overall, this was
the fourth straight weekly decline in mortgage interest rates.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, said that mortgage applications were slightly higher, driven by
marginally stronger purchase activity, while refinance applications were
essentially unchanged. “As observed in recent weeks, despite lower rates,
purchase applications have not moved much,” he added, noting that prospective
homebuyers are staying patient now that rates are moving lower and for-sale inventory
has started to increase.