While demand for mortgage applications rose slightly in the past week, applications to purchase a home fell.
"A decline in purchase applications was seen for both conventional and government loans. There continues to be strong demand for buying a home, but persistent supply shortages are constraining purchase activity, and building material shortages and higher costs are making it more difficult to increase supply" said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
The seasonally adjusted purchase index fell 4%, while interest in mortgage applications increased 1.2% from a week ago, according to the Mortgage Bankers Association's weekly survey. Interest in refinancing rose 4%.
The average 30-year fixed-rate mortgage rose to 3.15% from 3.11% with mortgage rates hit their highest level in two weeks across most major loans.
The survey covers over 75% of all U.S. retail residential mortgage applications. It has been conducted weekly since 1990.