Refinance application activity was down by 13% from the previous week, and purchase application volume dropped 6% on a seasonally adjusted basis.
“Refinance borrowers, both rate/term and cash-out, remain on the sidelines as current rates provide little financial incentive to act,” Kan said. “Purchase applications dropped to their lowest level since the beginning of this year and were more than 40% lower than a year ago.”
Potential buyers, Kan noted, “remain quite sensitive to the current level of mortgage rates, which are more than two percentage points above last year’s levels and have significantly reduced buyers’ purchasing power.”
The refinance share of application activity declined 1.9% to 32%, while the adjustable-rate mortgage share of activity rose to 6.9% of total applications.
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