Mortgage Applications Fell Slightly During Fourth of July Week

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Mortgage application volume dipped 2.4% on an adjusted basis during the week ended July 5, as the average rate for a 30-year fixed rate mortgage fell to 4.04%, down from 4.07%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.

The results include an adjustment for the Fourth of July Holiday.

Applications for refinances decreased 7% compared with the previous week but were 88% higher compared with the same week one year earlier.

Applications for purchases increased 2%.

On an unadjusted basis, total volume fell 22% compared with the previous week. Applications for purchases fell 18% on an unadjusted basis but were 6% higher compared with the same week one year earlier.

“Mortgage applications were down slightly, even after adjusting for the July Fourth holiday, as we saw opposing moves in purchase and refinance applications over the week,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Purchase applications increased from the previous week and were up five percent from a year ago, a continuation of the strong annual growth that we saw in the first half of 2019.

“Refinance activity decreased over six percent and the refinance share of applications fell back below 50 percent, even as the 30-year, fixed-rate declined three basis points to 4.04 percent,” Kan adds. “Borrowers have been less sensitive to low rates as many borrowers have either recently refinanced or are likely waiting for rates to fall even further. Other mortgage rates in our survey were unchanged or slightly higher than in the previous week.”

The refinance share of mortgage activity decreased to 48.7% of total applications, down from 51.0% the previous week.

The adjustable-rate mortgage (ARM) share of activity increased to 5.3% of total applications.

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