The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. increased 1.6 per
cent in the week ended August 30, following a 0.5 per cent advance the week before.
According to
the MBA’s data, last week’s rise in mortgage applications reflected a 3.3 per cent climb in mortgage
applications to purchase a home, which was partly offset by a 0.3 per cent fall
in mortgage refinance applications.
The report also
revealed that the average fixed 30-year mortgage rate slipped from 6.44 per cent to 6.43
per cent, the lowest level since the week ended April 14, 2023 (6.43 per cent). Overall, this represented the fifth straight weekly drop in mortgage interest rates.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that refinance applications were slightly down but continued
to show strong annual gains as borrowers with higher rates had been
refinancing to lower their monthly payments. “The refinance share of
applications averaged almost 46 per cent in August, the highest monthly average
since March 2022,” he added.