The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 5.14 percent from 5.09 percent, with points decreasing to 0.33 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 5.45 percent from 5.47 percent, with points decreasing to 0.57 from 0.80 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The USDA share of total applications remained unchanged at 0.6 percent the week prior. The VA share of total applications increased to 11.2 percent from 10.9 percent the week prior. The FHA share of total applications decreased to 12.0 percent from 12.1 percent the week prior. The adjustable-rate mortgage (ARM) share of activity decreased to 7.0 percent of total applications. The refinance share of mortgage activity decreased to 31.2 percent of total applications from 32.0 percent the previous week. The refinance index, however, fell five percent to its lowest level since November 2000, driven by a six percent drop in conventional refinance applications.' The 30-year fixed rate stayed more than two percentage points higher than a year ago at 5.45 percent but was down over 50 basis points from the June 2020 high of 5.98 percent, providing some relief for buyers in the market. 'However, if home price growth slows more significantly and mortgage rates move lower, we might see some purchase activity return later in the year. Home purchase applications continued to be held down by rapidly drying up demand, as high mortgage rates, challenging affordability, and a gloomier outlook of the economy kept buyers on the sidelines,' said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

'Mortgage application activity was lower last week, with overall applications declining over two percent to their lowest level since 2000.

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