Mortgage Applications Decline for Second Consecutive Week

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending Friday, July 5, 2024, the Market Composite Index, a measure of mortgage loan application volume decreased 0.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 20.0% compared with the previous week.  Last week’s results included an adjustment for the July 4th holiday.

The Refinance Index declined 2.0% from the previous week but was 28.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 1.0% compared to one week ago. The unadjusted Purchase Index decreased 19.0% compared with the previous week and was 13.0% lower than the same week one year ago.

Adding additional clarity to this week’s Mortgage Application Survey, MBA’s Vice President, and Deputy Chief Economist Joel Kan said, “The recent uptick in mortgage rates has slowed demand. Mortgage applications were essentially flat last week, as mortgage rates remained around 7 percent. Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates.”