“The impact of higher rates continued to be felt across both purchase and refinance markets,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
He noted that purchase applications decreased 2% from the week prior and 22% from the same week a year ago, falling to their lowest level since 1995.
Meanwhile, refinance applications fell 4% from the previous week and 12% from the same time period in 2022, hitting their lowest level since January 2023.
Purchase applications for government-backed loans declined significantly more than conventional loans. Purchase applications for government loans fell by 3% and refi applications for those loans fell by 9% week over week.
Kan added that “[adjustable-rate mortgage] loans increased almost 10% last week and continued to gain share, growing to 10.7% of all applications.”
The share of Federal Housing Administration (FHA) loan activity was 14.7%, down from 15.2% the week prior. The share of Department of Veterans Affairs (VA) loan activity was 10.1%, down from 10.5% while the share of Department of Agriculture (USDA) loan activity increased from 0.4% to 0.5% week over week.