The average interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less decreased to 6.94% from 7.02% the previous week.
Refinance applications slipped 0.4% but remained 30% higher than the same period last year. The seasonally adjusted purchase index, a gauge of homebuyer demand, increased 2% from the prior week, though it lagged 12% behind last year’s levels.
“Purchase applications increased a small amount for the week, led by applications for conventional loans,” Fratantoni noted. “Refinance application volume was also down slightly for the week but remains about 30% higher than this time last year.”
While purchase applications remain lower than last year, the MBA forecasts a pick-up in home sales later in 2024 as more inventory becomes available.
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