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.

Home search image via Shutterstock.
Home search image via Shutterstock.

“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.


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