Having inched up a percent at the end of last month, purchase mortgage application volume in the U.S. dropped 5 percent in the absolute over the past week and 4 percent on a seasonally adjusted basis. As such, purchase mortgage activity was 23 percent lower than at the same time last year and over 50 percent lower than two years ago, based on application data from the Mortgage Bankers Association.
At the same time, the average rate for a 30-year jumbo mortgage has ticked up to 7.13 percent, with the average rate for a benchmark 30-year mortgage ticking back up towards 7 percent and expectations for rate cuts over the next eight months having dropped, none of which should catch any plugged-in readers, other than the most obstinate, by surprise.
UPDATE: With the benchmark 30-year mortgage rate poised to hit 7 percent this week, purchase mortgage application volume in the U.S. ticked back up 5 percent in the absolute and 6 percent on a seasonally adjusted basis, “as some borrowers decided to act in case rates continue to rise.” That being said, purchase mortgage activity remains 10 percent lower than at the same time last year and over 50 percent lower than two years ago with the pace of new home purchase activity on the decline.