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U.S. mortgage application activity was recorded in the week ending July 29, with total loan applications up 1.2% from the previous week.
The increase comes as the average 30-year mortgage rate fell 24 basis points to 5.54%.
The Mortgage Bankers Association’s refinancing index rose two percentage points week over week and the purchasing index rose one percentage point.
“Mortgage rates fell last week following another announcement of monetary tightening by the Federal Reserve with the possibility of further interest rate hikes,” said Joel Kan, MBA’s associate vice president for economic and industry forecasting.
“As a result, government bond yields have fallen as investors anticipate a weak macroeconomic environment in the coming months. The 30-year fixed rate posted its biggest weekly decline since 2020, falling 31 basis points to 5.43%.
“The decline in rates has led to an increase in both refinancing and purchase applications, but activity is still muted compared to last year.
Low mortgage rates combined with indicators that more inventory is coming onto the market may lead to a revival in purchasing activity.”
In general applications, the share of refi in mortgage activity increased slightly from 30.7% to 30.8%.
FHA’s share of total applications fell from 12.1% to 11.9%. VA’s share of total applications increased from 10.6% to 10.8%. USDA’s share of total applications was unchanged at 0.6%.
Reference Source: MPA
