“Last week’s CPI data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week,” said Mike Fratantoni, senior vice president and chief economist at the MBA in Washington, D.C.
Applications to refinance fell 5% for the week, though they remained 17% above the same period a year ago when rates were nearly a quarter of a percentage point higher.
The refinance share of total applications edged up slightly to 40.3% from 40.2%.
Fratantoni noted that “purchase applications continue to run modestly ahead of last year, with last week’s volume up 3% on an annual basis, with stronger growth in conventional purchase volume while government purchase volume remained subdued.”
Purchase applications declined 3% for the week, registering just 3% above year-ago levels, a narrowing cushion compared with double-digit annual gains seen earlier in the spring.