Mortgage application volume dropped 3.9% during the week ended July 26, while rates remained relatively flat compared with the previous week, according to he Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances fell 7% compared with the previous week but were up 32% compared with the same week a year ago.
Applications for purchases decreased 2% compared with the previous week and were down 14% compared with the same week one year ago.
“Mortgage rates were little changed last week, with the 30-year fixed mortgage rate unchanged at 6.82 percent,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a release. “In recent weeks, there have been some small bursts of refinance activity, particularly for FHA and VA loans. Last week, VA refi application volume dropped sharply, which drove the aggregate result. Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates. Purchase volume also dropped slightly because of ongoing affordability challenges.”
The refinance share of mortgage activity decreased to 38.2% of total applications, down from 39.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.7% of total applications.
Photo: Scott Graham