US Mortgage Applications Fall in the Week Ending July 31

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, July 31, the Market Composite Index—a measure of mortgage loan application volume—decreased 2.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.0%.

The Refinance Index decreased 3% from the previous week and was 9% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 4% from one week earlier. On an unadjusted basis, the Purchase Index decreased 4% compared with the prior week and was 3% lower than the same week one year ago.

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

“In the wake of the July FOMC meeting, longer-term rates increased, with mortgage rates reaching their highest level in more than a year, with the 30-year fixed mortgage rate rising to 6.81%. Application volume for both refinance and purchase loans declined for the week, and are now running behind last year’s pace, indicating that higher mortgage rates have weakened overall demand.”