According to the Mortgage Bankers Association (MBA) weekly application survey, the number of mortgage applications increased 0.5 percent last week, while the average interest rate on a 30-year mortgage fell to 6.44 percent from 6.50 percent the previous week.

For the week ending August 23, applications for refinancing fell 0.1% from the previous week, but were 85% higher than the same week a year ago.

Purchase applications increased 1% from the previous week, but decreased 9% from the same week a year ago.

“Mortgage rates have declined for the fourth week in a row, with the 30-year fixed rate at 6.44 percent, the lowest since April 2023,” said Joel Kan, MBA vice president and deputy chief economist, in a statement. “Rates are now down more than 80 basis points year-over-year. Mortgage applications were slightly higher, reflecting marginally stronger purchase activity.”

“Refinance applications remained essentially flat, but are still 85 percent higher than last year as borrowers remain active — especially FHA and VA borrowers,” Kan adds. “As seen in recent weeks, purchase applications have not moved significantly despite lower rates. Potential homebuyers are remaining patient as rates are now falling and the inventory of homes for sale is increasing.”

The share of refinancings in mortgage activity increased from 46.3% in the previous week to 46.6% of all applications.

The share of variable-rate mortgages remained unchanged at 5.5%.

Photo: Scott Graham