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Kan also noted that there might have been a “delayed spillover” of applications from last week when rates also decreased, but there was not much response in refinance applications.
The refi share of mortgage activity was up from 61.6% to 64.1% of total applications. The adjustable-rate mortgage (ARM) share of activity inched up to 3.5% of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased from 3.15% to 3.09%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased from 3.20% to 3.16%.
“Purchase applications increased last week, but average loan sizes decreased to their lowest level since January 2021,” Kan said. “We continue to see ebbs and flows as housing demand remains strong, but for-sale inventory remains low. However, lower rates may be helping some home buyers close on their purchases, especially first-time home buyers. The year-over-year comparisons were down significantly for both purchase and refinance applications, as they were relative to a non-holiday week in 2020.”