Applications declined in the near term, but the average loan amount set a new record in the Mortgage Bankers Association’s latest weekly report.
While financing costs are still low enough to offset
Overall apps were down 4.1% on a seasonally-adjusted basis during the week ended Jan. 22 due to the uptick in 30-year conforming rates to 2.95%. A decline in average points, and a drop in rates outside the 30-year conforming market failed to offset the 3 basis-point rate increase from a week earlier.
“In a sign that borrowers are increasingly more sensitive to higher rates, large declines in government purchase applications and refinance applications pulled overall activity lower,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting, in a press release.
The average purchase loan amount hit the record high of $395,200, up from $384,000 a week earlier. Homebuyer app volume fell 4% on a seasonally-adjusted basis from
In the refi apps index, which has notched highs not seen since 2013, was down 5% in the short term but up 83% from a year ago.
Week-over-week, the share of applications guaranteed by the Department of Veterans Affairs fell to 12.4% from 13.8%, offsetting smaller increases in the share of apps insured by the Federal Housing Administration and in the U.S. Department of Agriculture loan sector.