New mortgage application activity grew nearly 4%. Refinance applications jumped 15% to the highest level since August 2022 as rates slowly decline.
WASHINGTON – U.S. mortgage applications increased in the week ending July 12, after declining in the past three weeks, according to weekly survey results from the Mortgage Bankers Association.
Mortgage applications rose 3.9% from the previous week, when they fell 0.2%, the MBA said.
The Market Composite Index, which measures mortgage loan application volume, grew a seasonally adjusted 3.9% from the previous week. On an unadjusted basis, the increase was 30%.
The Refinance Index climbed 15% from the previous week and was 37% higher than the same week one year ago. The seasonally adjusted Purchase Index fell 3% from one week earlier but surged 22% on a non-adjusted basis.
“Mortgage rates declined last week, as recent signs of cooling inflation and the increased likelihood of Fed rate cuts later this year pulled them lower,” Joel Kan said.
“The 30-year fixed rate declined to 6.87%, the lowest rate since March 2024.”
Application activity grew 4% on the back of a 15% jump in refinances to the highest level since August 2022.
“While FHA and VA refinance applications accounted for a significant share of the increase, these are likely recently originated loans with even higher than current offered rates,” Kan said.
“Even with last week’s rate decline, purchase applications continue to lag, down 14% compared to last year’s pace.”
The seasonally adjusted Purchase Index fell 3% from a week earlier, while the unadjusted measure increased 22%.
The 15-year fixed-rate mortgage rate decreased to 6.49% from 6.63%.
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Author: amyc