Mortgage applications inched higher in the week ended June 19, as mortgage rates remained flat and the Federal Reserve indicated it could raise rates in the face of rising inflation, the Mortgage Bankers Association said.
The MBA’s Market Composite Index, which includes fixed and adjustable-rate purchase and refinance mortgages, rose 1% from the previous week, while the Refinance Index gained 3% week over week. The Purchase Index, meanwhile, slid 1%.
“Mortgage rates changed little over the course of last week, despite the more hawkish tone from the FOMC at its June meeting,” MBA Chief Economist Mike Fratantoni said. “Purchase application volume edged slightly lower, while refinance activity posted modest gains. Despite the elevated mortgage rates and overall economic uncertainty, mortgage application volume is running 8% above year-ago levels.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.59% from 6.60%, while the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA was flat at 6.25%.
