Mortgage applications dip as spring buyers push ahead despite higher rates

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Purchase applications rose 1% on a seasonally adjusted basis and 2% unadjusted, leaving purchase demand 21% above year-ago levels.

“Mortgage rates increased slightly last week, with the 30-year fixed rate rising to 6.37 percent. The increase in rates led to a 4 percent decline in refinance application volume. However, purchase activity for conventional loans picked up almost 2 percent for the week,” said Mike Fratantoni, MBA senior vice president and chief economist.

“More notably, purchase application activity was more than 20 percent above last year’s pace. After a brief pause, in part because of the elevated geopolitical uncertainties, potential homebuyers certainly appear to be moving forward this spring and taking advantage of the more favorable inventory conditions in most parts of the country,” he said.

Refis cool, purchase loans carry the market

The latest figures extended a bumpy spring pattern. Earlier in April, MBA data showed a sharper 10.4% weekly drop in applications as the 30‑year rate touched 6.57%, its highest level since last August, before easing slightly in recent weeks.

Refinances accounted for 42.5% of total applications, down from 44.2% the prior week, while adjustable‑rate mortgages made up 8.3% of activity.

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