Loan Volume Up As Rates Rise To 6.25%

Mortgage loan application volume increased by 3.8% last week, breaking a multi-week pattern of steep declines, despite rates rising to their highest point since October 2008. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 3.8%. The results include an adjustment for Labor Day. The adjusted purchase index rose 1%, while the unadjusted purchase index increased 11% and was 30% lower YOY. The refinance index rosed by 10% and was 83% lower than the same time last year. Refis made up 32.5% of total applications. “Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected that they…

Loan Applications Down

Mortgage loan application volume fell 1.2% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped 1.2%. The adjusted purchase index fell 1%, while the unadjusted purchase index fell 2% and was 8% lower YOY. The refinance index fell 3% and was down 49% YOY. Refinances made up 48.4% of total applications. Rising mortgage rates continue to impact application activity. Rates reached 4.27% last week, their highest since May 2019, and are adding to investor uncertainty. They’re also having an outsized impact on refis, which declined for both conventional and government loans. Refinances bounced up last week due to a brief drop in rates, though it was…