Mortgage Applications Buoyed by FHA Refis

Mortgage application activity moved slightly higher last week despite a modest uptick in rates, according to the Mortgage Bankers Association’s (MBA) latest survey. The Composite Index rose 1.1% on a seasonally adjusted basis for the week ending June 20, with a small gain in refis offsetting a minor decline in purchase activity. Results included an adjustment for the Juneteenth holiday.

“Applications increased slightly overall driven by FHA refinances, but conventional applications saw declines over the week,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The average loan size for purchase applications declined to the lowest level since January, driven by decreasing conventional purchase loan sizes.”

Refinance applications were up 3% from…