Mortgage application volume increased during the week ended June 10 after four straight weeks of declines. However, the overall gains shown by data from the Mortgage Bankers Association’s (MBA’s) weekly Mortgage Applications Survey was only a resumption of application activity patterns two weeks earlier. The business week ended June 3 was shorted by the Memorial Day holiday. MBA’s Market Composite Index, a measure of loan application volume, increased 6.6 percent on a seasonally adjusted basis after declining 6a.5 percent the previous week. On an unadjusted basis, the Index increased 17 percent, identical to its decline the previous week. The Refinance Index increased 4 percent from the previous week but was 76 percent lower than the same week in 2021. The seasonally adjusted Purchase Index rose 8 percent from one week earlier and was up 18 percent on an unadjusted basis. The Index remains down 16 percent from the same week one year ago. The last time the Purchase Index rose year-over-year was in May 2021. [refiappschart] [purchaseappschart] According to Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, “Mortgage rates increased for all loan types, with the 30-year fixed rate last week jumping 25 basis points to 5.65 percent – the highest level since 2008. Mortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace. Despite the increase in rates, application activity rebounded following the Memorial Day holiday week but remained 0.29 percent below pre-holiday levels. With mortgage rates well above 5 percent, refinance activity continues to run more than 70 percent lower than last year.” 
Source: Mortgage News Daily