Mortgage applications ticked higher last week, reversing recent declines as easing rates provided a modest boost to activity. The Mortgage Bankers Association (MBA) reported a1.8% increaseon a seasonally adjusted basis for the week ending April 10.
Refinance activity led the gain, with the Refinance Index rising5%from the previous week and now sitting15%above year-ago levels. The increase follows a pullback in rates, which helped restore some borrower incentive after several weeks of weakening demand.
Purchase activity remained soft, with the seasonally adjusted Purchase Index slipping1%week over week. On an annual basis, purchase applications are down3%, marking a second consecutive week of year-over-year declines as buyer hesitation persists.
MBA’s Joel Kan said, "This dip in rates helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks. Purchase activity remained subdued as potential homebuyers remained hesitant given the current economic uncertainty, which kept purchase applications below last year’s level for the second consecutive week..."
Application composition shifted toward refinancing, with refinance share increasing to45.5%from 44.3% the prior week. ARM share decreased slightly to8.4%. FHA share fell to18.2%, while VA share declined to15.7%and USDA share held steady at0.5%.
Source: MND NewsWire
