The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. rose 0.8 per cent in
the week ended June 21, following a 0.9 per cent increase the week before. This
marked the third straight weekly advance in total mortgage application volume.
According to
the MBA’s data, last week’s soar in mortgage applications was primarily due to
a 1.2 per cent gain in mortgage applications to purchase a home. Meanwhile, mortgage
refinance applications slipped 0.1 per cent.
The report also
revealed that the average fixed 30-year mortgage rate edged
down from 6.94 per cent to 6.93 per cent, the lowest level since late March.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, said that lower rates were still not
enough to entice refinance borrowers back, as most continue to hold mortgages
with considerably lower rates. Ha also noted that purchase applications did see
a small increase after adjusting for the Juneteenth holiday. “Government
purchase loans, primarily FHA and VA, saw gains of more than 2 per cent over the
previous week, as homebuyers in those segments sought to take advantage of the
recent rate relief,” Kan added.