Mortgage application activity slipped modestly last week as both purchase and refinance demand eased during the holiday-shortened period. The Mortgage Bankers Association (MBA) reported a 2.2% decrease in total application volume on a seasonally adjusted basis for the week ending July 3, with results adjusted for the Fourth of July holiday.
Purchase applications declined 1% from the previous week on a seasonally adjusted basis but remained 5% higher than the same week one year ago, still stronger year-over-year despite elevated borrowing costs.
Refinance activity weakened further, with the Refinance Index falling 4% from the prior week while remaining 8% above year-ago levels.
“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 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “After adjusting for the Independence Day holiday, government purchase volume increased modestly, led by a 5 percent gain in VA purchase applications, while conventional purchase activity declined. Refinance application volume was down 4 percent, as homeowners saw little enticement to act with rates still elevated.”
The refinance share of mortgage activity decreased to 40.6% from 41.4%, while the adjustable-rate mortgage (ARM) share increased to 7.8% from 7.6%.
Government-backed application shares were mixed. FHA share decreased to 16.4% from 16.9%, while VA share edged up to 13.0% from 12.9%. USDA share increased to 0.5% from 0.4%.
Mortgage Rate Summary:
- 30yr Fixed: 6.58% (from 6.57%) | Points: 0.64 (from 0.65)
- 15yr Fixed: 5.99% (from 6.00%) | Points: 0.71 (from 0.75)
- Jumbo 30yr: 6.50% (from 6.52%) | Points: 0.42 (from 0.38)
- FHA: 6.28% (from 6.27%) | Points: 0.79 (from 0.77)
- 5/1 ARM: 5.84% (from 5.79%) | Points: 0.94 (unchanged)
