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Week over week, MBA’s refinance index decreased 9%, and the seasonally adjusted purchase index dipped 1%. However, purchase applications were up by 5% on an unadjusted basis.

“Consistent with this period of higher mortgage rates, refinance applications fell 9% last week and stood at around half of last year’s pace. The refinance share of applications was also at its lowest level since July 2019,” Kan said. “Purchase applications saw a modest decline over the week, with government purchase applications accounting for most of the decrease.”

Of total applications, the refi share of mortgage activity declined from 56.2% to 52.8%, while the adjustable-rate mortgage (ARM) share of activity grew to 5%.

“Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000,” Kan said.