{"id":1237,"date":"2025-06-05T20:47:02","date_gmt":"2025-06-05T20:47:02","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/purchase-and-refi-demand-diverge-again\/"},"modified":"2025-06-05T20:47:02","modified_gmt":"2025-06-05T20:47:02","slug":"purchase-and-refi-demand-diverge-again","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/purchase-and-refi-demand-diverge-again\/","title":{"rendered":"Purchase and Refi Demand Diverge Again"},"content":{"rendered":"\n<div>\n<p>The Mortgage Bankers Association&#8217;s (MBA) weekly application survey continues to track closely with the more granular daily rate data from MND. Both showed mortgage rates climbing to new multi-month highs last week, and that upward momentum once again took a toll on refinance demand\u2014even as purchase applications managed to grind higher.<\/p>\n<p>\u201cMortgage rates reached [their] highest level since January, following higher Treasury yields,\u201d said Joel Kan, MBA\u2019s Vice President and Deputy Chief Economist. \u201cAdditional market volatility has added to the increase, keeping the mortgage-Treasury spread wider than it was earlier this year. The 30-year fixed rate increased to 6.98 percent, its third consecutive weekly increase.\u201d Kan noted that while refis dropped, purchases continue to outperform year-ago levels thanks in part to rising inventory.<\/p>\n<p>That aligns with the broader data: refinance applications fell 7 percent from the previous week, while purchase applications rose 3 percent. Compared to the same week one year ago, purchases are up 18 percent and refis are still running 37 percent ahead\u2014though that year-over-year gap is narrowing.<\/p>\n<p><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/a.mortgagenewsdaily.com\/assets\/683a27c285753f5ee962fd51\/683a27c285753f5ee962fd51.png\" width=\"521\" height=\"374\" alt=\"\"\/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/a.mortgagenewsdaily.com\/assets\/683a27e185753f5ee962fd53\/683a27e185753f5ee962fd53.png\" width=\"525\" height=\"404\" alt=\"\"\/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/a.mortgagenewsdaily.com\/assets\/683a27d285753f5ee962fd52\/683a27d285753f5ee962fd52.png\" width=\"518\" height=\"407\" alt=\"\"\/><\/p>\n<p data-start=\"2851\" data-end=\"2877\"><strong data-start=\"2851\" data-end=\"2877\">Mortgage Rate Summary From MBA&#8217;s data:<\/strong><\/p>\n<ul data-start=\"2879\" data-end=\"3151\">&#13;<\/p>\n<li data-start=\"2879\" data-end=\"2935\">&#13;\n<p data-start=\"2881\" data-end=\"2935\"><strong data-start=\"2881\" data-end=\"2896\">30yr Fixed:<\/strong> 6.98% (+0.06) | Points: 0.67 (\u22120.02)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"2936\" data-end=\"2992\">&#13;\n<p data-start=\"2938\" data-end=\"2992\"><strong data-start=\"2938\" data-end=\"2953\">Jumbo 30yr:<\/strong> 6.93% (\u22120.01) | Points: 0.69 (\u22120.03)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"2993\" data-end=\"3042\">&#13;\n<p data-start=\"2995\" data-end=\"3042\"><strong data-start=\"2995\" data-end=\"3003\">FHA:<\/strong> 6.66% (+0.06) | Points: 0.95 (\u22120.01)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"3043\" data-end=\"3099\">&#13;\n<p data-start=\"3045\" data-end=\"3099\"><strong data-start=\"3045\" data-end=\"3060\">15yr Fixed:<\/strong> 6.23% (+0.02) | Points: 0.67 (\u22120.05)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"3100\" data-end=\"3151\">&#13;\n<p data-start=\"3102\" data-end=\"3151\"><strong data-start=\"3102\" data-end=\"3114\">5\/1 ARM:<\/strong> 6.22% (+0.06) | Points: 0.46 (+0.10)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;\n<\/ul>\n<p>In more timely mortgage rate developments, MND\u2019s daily rate tracking showed a welcome drop to start the new week, indicating that mortgage rates may be stabilizing after a sharp three-week climb. That shift could offer a bit of relief for refinance demand, although volatility remains elevated and purchase activity tends to be less reactive to short-term changes.<\/p>\n<p data-start=\"2177\" data-end=\"2229\"><strong>Breakdown of changes in composition of applications:<\/strong><\/p>\n<ul data-start=\"2231\" data-end=\"2417\">&#13;<\/p>\n<li data-start=\"2231\" data-end=\"2274\">&#13;\n<p data-start=\"2233\" data-end=\"2274\"><strong data-start=\"2233\" data-end=\"2253\">Refinance Share:<\/strong> 34.6% (\u2193 from 36.6%)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"2275\" data-end=\"2310\">&#13;\n<p data-start=\"2277\" data-end=\"2310\"><strong data-start=\"2277\" data-end=\"2291\">ARM Share:<\/strong> 7.5% (\u2191 from 7.1%)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"2311\" data-end=\"2345\">&#13;\n<p data-start=\"2313\" data-end=\"2345\"><strong data-start=\"2313\" data-end=\"2327\">FHA Share:<\/strong> 17.9% (no change)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"2346\" data-end=\"2382\">&#13;\n<p data-start=\"2348\" data-end=\"2382\"><strong data-start=\"2348\" data-end=\"2361\">VA Share:<\/strong> 12.3% (\u2193 from 12.6%)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;<\/p>\n<li data-start=\"2383\" data-end=\"2417\">&#13;\n<p data-start=\"2385\" data-end=\"2417\"><strong data-start=\"2385\" data-end=\"2400\">USDA Share:<\/strong> 0.5% (no change)<\/p>\n<p>&#13;\n<\/li>\n<p>&#13;\n<\/ul>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Mortgage Bankers Association&#8217;s (MBA) weekly application survey continues to track closely with the more granular daily rate data from MND. Both showed mortgage rates climbing to new multi-month highs last week, and that upward momentum once again took a toll on refinance demand\u2014even as purchase applications managed to grind higher. \u201cMortgage rates reached [their] [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[734,1002,502,370],"class_list":["post-1237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-demand","tag-diverge","tag-purchase","tag-refi"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=1237"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1237\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/1238"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=1237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=1237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=1237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}