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Mortgage application volume slips modestly in holiday-shortened week

The MBA said the 30-year fixed rate rose slightly to 6.58% while refinance applications fell 4% and the refinance share dropped to 40.6%.

Reported · Written up by our desk · Mortgages

Mortgage application activity eased during the holiday-shortened week ending July 3, according to data from the Mortgage Bankers Association. MBA reported total application volume fell 2.2% on a seasonally adjusted basis, with purchase applications down 1% for the week but still 5% higher than the same week a year ago.

Refinance demand weakened further, the MBA said, with the Refinance Index dropping 4% from the prior week while staying 8% above year-ago levels. MBA attributed the lack of momentum to elevated borrowing costs, noting that the 30-year fixed rate increased slightly to 6.58% during the period.

MBA also reported changes inside application mix, with the refinance share of mortgage activity decreasing to 40.6% from 41.4%, while the adjustable-rate mortgage share rose to 7.8% from 7.6%. Government-backed applications were mixed, as FHA share fell to 16.4% from 16.9% and VA share edged up to 13.0% from 12.9%, while USDA share increased to 0.5% from 0.4%.

Mortgage News Daily, citing MBA commentary, said government purchase volume increased modestly after accounting for the Independence Day holiday, led by a 5% gain in VA purchase applications, while conventional purchase activity declined.

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