Mortgage Bankers Association

The news helped drive 30-year mortgage averages above 7% last week, according to the Mortgage Bankers Association.

Volumes were driven down largely by slowing conventional purchase activity resulting from ongoing interest rate and affordability challenges, the Mortgage Bankers Association said.

While the monthly amount decreased by only a few dollars in June, it was the first decline since late last year, according to the Mortgage Bankers Association.

The decline occurred even as interest rates held steady, but average loan amounts shot up due to a heightened slowdown of federally sponsored activity, the Mortgage Bankers Association said.

Declining rates contributed to a surge in refinances, but a sluggish market is capping purchase activity, according to the Mortgage Bankers Association.

A decline in refinances was offset by a rise in purchase loans, largely among government-guaranteed programs, according to the Mortgage Bankers Association.

The Mortgage Bankers Association attributes this to muted demand for home purchases and companies trimming their operations.

Purchase volumes reached their highest level since early May, but current numbers sit 30% lower than where they were a year ago, the Mortgage Bankers Association said.

Both loan volumes and interest rates came in mostly flat, but the jumbo average ran ahead of the conforming for the second week in a row, the Mortgage Bankers Association said.

The uptick occurred as conforming rates pulled back for the second week in a row, coming in below the jumbo average according to the Mortgage Bankers Association.