US Mortgage Applications Decline in the Week Ending April 25

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, April 25, the Market Composite Index—a measure of mortgage loan application volume—declined 4.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4.0% compared with the previous week.

The Refinance Index declined 4.0% from the previous week but was 42.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 4.0% from one week earlier. The unadjusted Purchase Index decreased 3.0 % compared with the previous week but was 3.0% higher than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates were little changed last week with the 30-year fixed rate at 6.89%. Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February. Even with the spring homebuying season underway, purchase applications decreased, as conventional and VA applications saw declines of 6% and 4%, respectively. With slowly-increasing housing inventory in many markets and first-time homebuyers still in the mix, FHA purchase applications fared better with only a slight decline. Overall purchase applications continue to run ahead of last year’s pace.

Refinance activity dipped again, as mortgage rates remained close to 7%, and borrowers hold out for a bigger decline in rates. Given the pullback in refinancing, the average loan size for refinances declined to just under $290,000, the lowest level in three months.”