US Mortgage Applications Decline in the Week Ending July 3

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, July 3, the Market Composite Index—a measure of mortgage loan application volume—decreased 2.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 12.0%. MBA noted that this week’s results include an adjustment for the Fourth of July holiday.

The Refinance Index decreased 4% from the previous week but was 8% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 1.0% from one week earlier. On an unadjusted basis, the Purchase Index decreased 11% compared with the prior week but was 5% higher than the same week one year ago.

In remarks accompanying the release, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“Mortgage application volume was little changed during the week of the nation’s 250th Independence Day celebration, as the 30-year fixed rate increased slightly to 6.58%. After adjusting for the Independence Day holiday, government purchase volume increased modestly, led by a 5% gain in VA purchase applications, while conventional purchase activity declined. Refinance application volume was down 4%, as homeowners saw little enticement to act with rates still elevated.”