"This week's data paints a different picture compared to last week's bump up in refinance volume and applications. On an unadjusted basis, the index decreased 13% compared with the previous week. The refinance index decreased 21% from the previous week, but remained 16% higher than the same week one year ago. The refinance share of mortgage activity decreased to 55.0% of total applications from 60.2% the previous week."
"Mortgage rates increased to its highest level in three weeks as Treasury yields pushed higher on recent, stronger-than-expected economic data. After the burst in refinancing activity over the past month, this reversal in mortgage rates led to a sizeable drop in refinance applications, consistent with our view that refinance opportunities this year will be short-lived, said Joel Kan, MBA's vice president and deputy chief economist."
"With the 30-year fixed rate now at 6.46%, refinance activity declined for all loan types, including a 22% decrease in conventional refinances and 27% decrease in VA refinances. The average loan size for refinances dropped to $380,100 from $461,300 two weeks ago as these higher rates eliminated the refinance incentive for many borrowers with large loans."
Weekly mortgage activity reversed after a recent refinance surge. The unadjusted index fell 13% week-over-week and the refinance index fell 21% though it remains 16% above last year. Refinance share dropped to 55.0% from 60.2%. Seasonally adjusted purchase activity edged down 1% and unadjusted purchase activity fell 2% while remaining 16% higher than a year earlier. Treasury yields and stronger economic data pushed mortgage rates to a three-week high, triggering a sizable drop in refinance applications and reducing average refinance loan sizes. ARM share declined to 8.4%, FHA share rose to 16.8%, and VA share fell to 16.2%.
Read at www.housingwire.com
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