Mortgage applications fell 1.4% from a week earlier, despite a dip in lending rates last week, according to data from the Mortgage Bankers Association.

Applications werꦏe 30% lower than one year ago, as buyers adjust to a higher rate envi✨ronment, according to MBA. 

The Pur𝕴chase Index, a measure ♕of home purchases, decreased 2% from one week earlier on a seasonally adjusted basis.   

“Purchase activity is constrained by reduced purchasing power from higher rates and the ongoing lack of for-sale inventory in the market, while there continues to b༒e very little rate incentive for refinance borrowers,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist in a statement. “There was less of a decline in government purchase applications last week, which was consistent with a growing share of first-time home buyers in the market.”

MBA’s Refinance Index decreased 1% from the week before and was 42% lower than the same week one y⛦ear ago. The refinance share of mortgage activity increased last week, jumping to 27.3% of total applications from 26.7% the week before. 

Rates Drop for Week Ending June 2

꧟ The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balance🧸s decreased to 6.81% from 6.91% the week before. 

The average contract interest rate for 30-year fixed-rate mortgages with 🌠jumbo loan balances decreased to 6.74% from 6.78% the week before. 

The average contract intere♛st rate for mortgage♋s backed by the Federal Housing Authority decreased to 6.73% from 6.85% the week before. 

The FHA share of total applications increased to 13.2% from 12.7% of total applications the week prior. The Veterans Affairs share of total applications increased to 12.5% from 12.1% the week before.