Mortgage application volume decreased 4.0% on an adjusted basis during the week ended July 16, as the average rate for a 30-year increased to 3.11%, up from 3.09%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The previous week’s results included an adjustment for the Fourth of July holiday.
Applications for refinances decreased 3% compared with the previous week while applications for purchases decreased 6%.
Year over year, applications for refinances were down 18% while applications for purchases were also down 18%.
“The 10-year Treasury yield dropped sharply last week, in part due to investors becoming more concerned about the spread of COVID variants and their impact on global economic growth,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “There were mixed changes in mortgage rates as a result, with the 30-year fixed rate increasing slightly to 3.11 percent after two weeks of declines.
“Other surveyed rates moved lower, with the 15-year fixed rate loan, used by around 20 percent of refinance borrowers, decreasing to 2.46 percent – the lowest level since January 2021,” Kan says. “On a seasonally adjusted basis compared to the July 4th holiday week, mortgage applications were lower across the board, with purchase applications back to near their lowest levels since May 2020. Limited inventory and higher prices are keeping some prospective homebuyers out of the market. Refinance activity fell over the week, but because rates have stayed relatively low, the pace of applications was close to its highest level since early May.”
The refinance share of mortgage activity increased to 64.9% of total applications, up from 64.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 3.3% of total applications.
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