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Mortgage Applications Drop 5.2% as 30-Year Rate Climbs to 6.37%

Rising costs nudged borrowers toward FHA and VA options, with average loan sizes falling to the lowest since August.

Overview

  • The 30-year fixed rate rose for a third straight week to 6.37%, the highest in four weeks, according to MBA data.
  • Total applications fell 5.2% week over week, with purchase activity down 2% and refinance activity down 7%.
  • Refinance volume remained 125% higher than a year ago and purchase applications were 26% above last year’s levels.
  • Product mix shifted as ARM share fell to 7.5% while FHA rose to 19.9%, VA to 15.2%, and USDA to 0.3%.
  • Rate moves were mixed across loan types, with jumbo 30-year loans easing to 6.39%, 15-year fixed rising to 5.83%, 5/1 ARMs up to 5.65%, and FHA fixed holding at 6.14%.