Mortgage Applications Decline in the Week Ending July 26th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, July 26th, the Market Composite Index—a measure of mortgage loan application volume—decreased 3.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4.0% compared with the previous week.

The Refinance Index decreased 7.0% from the previous week but was 32.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index decreased 2.0% compared to one week ago. The unadjusted Purchase Index decreased 1.0% compared with the previous week and was 14.0% lower than the same week one year ago.

Adding background and analysis to this week’s survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“Mortgage rates were little changed last week, with the 30-year fixed mortgage rate unchanged at 6.82%. In recent weeks, there have been some small bursts of refinance activity, particularly for FHA and VA loans. Last week, VA refi application volume dropped sharply, which drove the aggregate result. Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates. Purchase volume also dropped slightly because of ongoing affordability challenges.”