The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. tumbled 10.1 per
cent in the week ended August 16, following a 16.8 per cent surge the week before. This marked the sharpest weekly decline in
total mortgage application volume since mid-February.
According to
the MBA’s data, last week’s drop in mortgage applications was primarily driven by a 15.2 per cent plunge
in mortgage refinance applications. In addition, mortgage applications to purchase a
home fell 5.2 per cent.
The report also
revealed that the average fixed 30-year mortgage rate decreased from 6.54 per cent to 6.50
per cent, the lowest level since the week ended May 5, 2023 (6.48 per cent).
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, said that both mortgage rates and mortgage applications had stabilized after a few weeks of financial market volatility, which led to a
quick drop in mortgage rates. “The other point to note is that yes rates are
lower, but they’re still 6.5%, which is not low for those borrowers out there
with sub-five rates," he added.