Mortgage application volume decreased 3.8% during the week ended July 25, as the average rate for a 30-year dipped to 6.83%, down from 6.84% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 1% compared with the previous week but were up 30% compared with the same week one year ago.
Applications for purchases decreased 6% compared with the previous week but were up 17% compared with the same week one year ago.
“Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions.”
“The 30-year fixed rate was little changed at 6.83 percent, but high enough that there was not much interest in refinancing, pushing the refinance index lower for the third straight week,” Kan adds. “Purchase applications decreased by almost 6 percent, as applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions.”
The refinance share of mortgage activity increased to 40.7% of total applications, up from 39.6% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 8.3% of total applications.
Photo: Dillon Kydd