The latest mortgage application activity shows a significant uptick, with the index increasing 12% unadjusted week-over-week. Refinance activity rose by 11%, driven largely by VA applications, and conventional loan applications increased notably. Despite some economic challenges indicated by a negative GDP growth reading, the net impact on mortgage rates was mostly downward, with the 30-year fixed rate declining to 6.84%. This suggests a resilience in home buyer activity as rates adjust and consumers respond to economic conditions, particularly for move-up buyers.
The refinance share of mortgage activity decreased to 37.1% of total applications, down slightly from 37.3% the previous week. This shift reflects changing borrower priorities.
Borrowers of conventional loans tend to have larger loan sizes and are more likely to be move-up buyers, suggesting a robust demand despite economic headwinds.
With mortgage rates moving lower, refinance volume increased by 11%, driven in particular by a substantial 26% rise in VA refinance applications.
The net impact on mortgage rates was mostly downward, returning to levels from early April, as mixed economic signals continue to shape borrower decisions.
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