Mortgage application activity declined in the week ending June 17 with both refinancing and purchase activity lower as mortgage rates crept higher.
The Mortgage Bankers Association (MBA) reported the 30-year fixed mortgage rate rose six basis points from the prior week to 4.57%.
As a result, the MBA noted that the Refinance Index fell 7.2% to ~2676, with refinancings as a percent of total applications sliding to 69.2% from 70.0%. The Purchase Index slipped 2.8% to ~186.
MBS analysts said that mortgage rate levels need to move closer to 4% in order for the Refinance Index to increase to the 4000 to 5000 peak levels experienced in late summer and into the fall.
The story remains the same regarding the poor state of housing despite record affordability: tight credit, declining home values, capacity constraints at mortgage bankers, higher closing costs, and conservative appraisals.