Markets & Economy

Purchase mortgage applications down as some preapproved buyers can’t find homes

Demand down 15 percent from a year ago

Demand for purchase mortgages fell last week as homes continued to be in short supply in many markets, the Mortgage Bankers Association reports.

Applications for purchase loans dropped a seasonally adjusted 5 percent for the week ending June 13 from a week earlier and were down 15 percent from a year ago, according to the MBA’s Weekly Mortgage Applications Survey.

“Interest rates increased relative to the previous week, as incoming economic data continues to suggest a pickup in the pace of growth,” said Mike Fratantoni, chief economist at MBA, in a statement. “Although the average rate for the week was up only a few basis points, the increase was matched by a large drop in refinance volume, and purchase application volume also declined.”

Some lenders continue to report that they have preapproved borrowers who have been unable to find a property given the tight inventory in certain markets, he said.

The average rate for a 30-year fixed-rate mortgage with a balance of $417,000 or less and a 20 percent down payment was 4.36 percent, up from 4.34 percent the week before.