Mortgage application volume fell 10.0% on an adjusted basis during the week ended July 11, as rates went back on the rise, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances dropped 7% compared with the previous week but were up 25% compared with the same week one year ago.
Applications for purchases decreased 12% compared with the previous week but were up 13% compared with the same week one year ago.
“Treasury yields finished higher last week on average despite an intra-week drop, driven partly by renewed concerns of the impact of tariffs on the economy,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “As a result, mortgage rates rose after two weeks of declines, which contributed to slower application activity. Jumbo rates were lower than conventional rates for the third straight week, as some depositories may be positioning themselves for growth in balance sheet lending.”
“Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,” Kan adds. “Refinance applications also dipped because of higher rates, with refinance applications falling, led by VA refinances partially reversing their previous week’s gain, dropping 22 percent.”
The refinance share of mortgage activity increased to 41.1% of total applications, up from 40.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
Photo: Herve Margot