Mortgage application volume increased 3.1% during the week ended August 1, as the average rate for a 30-year, fixed-rate mortgage fell to 6.77%, down from 6.83% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 5% compared with the previous week and were up 18% compared with the same week one year ago.
Applications for purchases increased 2% compared with the previous week and were up 18% compared with the same week one year ago.
“Mortgage rates moved lower last week, following declining Treasury yields as economic data releases signaled a weakening U.S. economy,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “As a result, the 30-year fixed rate decreased for the third straight week to 6.77 percent.”
“Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week,” Kan says. “Purchase activity continued to lead 2024’s pace, as increasing for-sale inventory of homes has been supporting homebuying, but on the other hand recent weakness in the economic environment has deterred some prospective homebuyers.”
“Refinance applications increased to their strongest pace in four weeks after being on a downward trend the prior three weeks,” Kan adds. “The refinance share increased to almost 42 percent, its highest level since April.”
The refinance share of mortgage activity increased to 41.5% of total applications, up from 40.7% percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 8.5% of total applications.
Photo: Ben Mullins