Mortgage Purchase And Refinancing Applications Fall

Purchase applications for home mortgages fell a seasonally adjusted 2 percent in the June 8 week following a rare increase in the prior week that interrupted a 5-week long string of consecutive declines. Unadjusted, purchase applications were down 0.2 percent from the level in the same week last year, dipping into negative year-on-year territory for the first time this year. Applications for refinancing also fell 2 percent from the prior week, keeping the refinancing share of mortgage activity unchanged at 35.6 percent. Mortgage rates resumed their climb higher, with the average interest rate for 30-year fixed rate conforming mortgages ($453,100 or less) increasing by 8 basis points to 4.83 percent. Surprising at a time of continuing exceptional labor market strength, the first negative year-on-year reading in purchase applications this year is not a good indication for a housing market already showing signs of weakness.