… The Refinance Index increased 2 percent from the previous
week and was 80 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index increased 0.1 percent from one week earlier. The unadjusted Purchase Index decreased 21
percent compared with the previous week and was 24 percent lower than the same week one year ago.

“Mortgage rates continue to experience large swings. After increasing 65 basis points during the past
three weeks, the 30-year fixed rate declined 14 basis points last week to 5.84 percent. Rates are still
significantly higher than they were a year ago, when the 30-year fixed rate was at 3.2 percent,” said Joel
Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The decline in mortgage
rates led to a slight increase in refinancing, driven by an uptick in conventional loans. However,
refinances are still 80 percent lower than a year ago and more than 60 percent below the historical
average.”

Added Kan, “Overall purchase activity has weakened in recent months due to the quick jump in mortgage
rates, high home prices, and growing economic uncertainty. Purchase applications were essentially flat
last week but were supported by a 6 percent increase in government loans. The average purchase loan
amount declined to $413,500, which is an ongoing downward trend since it hit a record $460,000 in
March 2022.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($647,200 or less) decreased to 5.84 percent from 5.98 percent, with points decreasing to 0.64 from 0.77
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added