In the week ending on August 25, mortgage applications experienced a 2.3% increase. This rise occurred despite mortgage rates remaining at a 23-year high and not showing further upward movement. According to data released by the Mortgage Bankers Association on Wednesday, this development followed a 4.2% decline in overall activity in the week ending August 18.
Refinancing loan applications saw a 3% uptick, while new purchase applications demonstrated a seasonally adjusted increase of 2%.
The average contract interest rate for 30-year fixed mortgages with loan balances of $726,200 or less remained unchanged at 7.31%, marking the highest point since December 2000.
Joel Kan, the Vice President and Deputy Chief Economist of MBA, remarked, “Treasury yields reached their peak early in the week and subsequently decreased by the end. This might have contributed to some of the increased activity. While mortgage applications for both home purchases and refinances saw their first rise in five weeks, they remained at modest levels. Purchase applications saw an increase, yet they still lagged by 27% compared to the previous year. Elevated mortgage rates and limited housing inventory continue to exert pressure on home buying activity.”