Mortgage Apps Sink 9.2% in Latest Week

Mortgage applications went into a steep dive last week, erasing hopes of a rebound following stronger numbers a week earlier.

The Mortgage Bankers Association (MBA) reported a seasonally adjusted 9.2 percent decline in its Weekly Mortgage Applications Survey for the week ending June 13. On an unadjusted basis, the group's application index was down 10 percent over the week.

The drop reverses an adjusted 10.3 percent increase reported the week prior and accompanies a slight rise in average 30-year fixed rates to 4.36 percent.

"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," said MBA chief economist Mike Fratantoni.

However, interest rates weren't the only factor. "Some lenders continue to report that they have pre-approved borrowers who have been unable to find a property given the tight inventory in certain markets."

The refinance component of the latest survey was down 13 percent from the previous week, bringing the refinance share of total mortgage activity down to 52 percent.

At the same time, the seasonally adjusted Purchase Index fell 5 percent week-over-week. Unadjusted, MBA estimates purchase applications were down 15 percent from the same week last year.