Mortgage application volume dipped 0.2% during the week ended July 5, as the average rate for a 30-year, fixed-rate mortgage decreased slightly to 7%, down from 7.03% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The results include an adjustment for the July 4th holiday.
Applications for refinances decreased 2% compared with the previous week but were up 28% compared with the same week one year ago.
Applications for purchases increased 1% compared with the previous week earlier but were down 13% compared with the same week one year ago.
“The recent uptick in mortgage rates has slowed demand. Mortgage applications were essentially flat last week, as mortgage rates remained around 7 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates.”
The refinance share of mortgage activity decreased to 34.9% of total applications, up from 35.7% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.2% of total applications.
Photo: Romain Dancre