The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. tumbled 7.2 per
cent in the week ended January 26, following a 3.7 per cent increase the week before. This marked the first decrease in total mortgage
application volume in four weeks.
According to
the MBA’s data, last week’s decline in mortgage applications reflected an 11.4 per cent plunge in mortgage applications
to purchase a home that was partly offset by a 1.6 per cent advance in mortgage refinance
applications.
The report also
revealed that the average fixed 30-year mortgage rate was unchanged at 6.78 per
cent.
Commenting on
the latest survey results, Joel Kan, MBA's vice president and deputy chief
economist, noted that purchase applications declined last week as low existing
housing supply is limiting options for prospective buyers and is keeping
home-price growth elevated, resulting in a one-two punch that continues to
constrain home purchase activity. “The average loan size for purchase
applications has picked up in recent weeks to $444,100, the largest average loan
size since May 2022,” he added.