Kan added that data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates.

Refinance applications posted a 6% decrease from the previous week, and purchase application volume slipped 3% week over week. Subsequently, the refi share of mortgage activity declined seven basis points to 31.8% of total applications.

“Both purchase and refinance applications declined last week, with purchase index at a 28-year low for a second consecutive week,” Kan said. “Purchase applications were 44% lower than a year ago, as homebuyers again retreat to the sidelines as higher rates crimp affordability. Refinance applications account for less than a third of all applications and remained more than 70% behind last year’s pace, as a majority of homeowners are already locked into lower rates.”

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