Mortgage Applications Increase in the Week Ending August 2nd

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 2nd, the Market Composite Index—a measure of mortgage loan application volume—increased 6.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6.0% compared with the previous week.

The Refinance Index increased 16.0% from the previous week and was 59.0% 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 increased 0.3% compared with the previous week but was 11.0% lower than the same week one year ago.

Adding background and analysis to this week’s results, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates decreased across the board last week and mortgage application volume reached its highest level since January of this year. The 30-year fixed rate fell to 6.55%, reaching its lowest level since May 2023, following doveish communication from the Federal Reserve and a weak jobs report, which added to increased concerns of an economy slowing more rapidly than expected. As a result of lower rates, refinance applications increased across all loan types, particularly for VA loans, and were almost 60% higher than it was at this time last year and were at its highest level in two years.”

Despite the downward movement in rates, purchase activity only saw small gains, with an increase in conventional purchase applications offset by decreases in government purchase applications. For-sale inventory is beginning to increase gradually in some parts of the country and homebuyers might be biding their time to enter the market given the prospect of lower rates.”