US Mortgage Applications Increase in the Week Ending August 1

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 1, the Market Composite Index—a measure of mortgage loan application volume—increased 3.1% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the Index rose 3.0%.

The Refinance Index increased 5.0% from the prior week and was 18.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index rose 2.0% from the week before. On an unadjusted basis, the Purchase Index increased 1.0% and was 18.0% higher than the same week last year.

Commenting on the results of the latest survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates moved lower last week, following declining Treasury yields as economic data releases signaled a weakening US economy. As a result, the 30-year fixed rate decreased for the third straight week to 6.77%. Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week. Purchase activity continued to lead 2024’s pace, as increasing for-sale inventory of homes has been supporting homebuying, but on the other hand, recent weakness in the economic environment has deterred some prospective homebuyers.

Refinance applications increased to their strongest pace in four weeks after being on a downward trend the prior three weeks. The refinance share increased to almost 42%, its highest level since April.”