Mortgage application volume increased 1.1% during the week ended July 14, with the average rate for a 30-year fixed-rate mortgage with conforming loan balance falling to 6.87%, down from 7.07% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The previous week’s results included an adjustment for Independence Day, the MBA notes in its report.
Applications for refinances increased 7% compared with the previous week but were down 32% compared with the same week one year ago.
Applications for purchases decreased 1% compared with the previous week and were down 21% compared with the same week one year ago.
“Mortgage rates declined last week, as markets responded positively to incoming data showing that U.S. inflation continues to cool,” says Joel Kan, vice president and deputy chief economist, for the MBA, in a statement. “Most rates in our survey declined, with the 30-year fixed rate falling to 6.87 percent.
“Refinance applications increased more than 7 percent, but that activity accounted for only 28 percent of applications and was more than 30 percent behind last year’s pace,” Kan says. “Despite last week’s lower rates, purchase applications decreased, as home purchase activity is still being held back by low housing supply and rates that are still much higher than a year ago.”
The refinance share of mortgage activity increased to 28.4% of total applications, up from 26.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.
Photo: Wolfgang Hasselmann