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Mortgage applications rebound as purchase demand offsets fewer refis
For the week ending July 17, total application volume rose 1.9% seasonally adjusted, while the refinance index fell 2%.
Mortgage application activity rebounded last week as stronger home purchase demand offset a modest decline in refinancing, even as borrowing costs climbed to their highest level since last August, according to Mortgage News Daily, citing data from the Mortgage Bankers Association (MBA).
MBA reported total application volume increased 1.9% for the week ending July 17 on a seasonally adjusted basis. Purchase applications rose 6% from the prior week, and were 0.2% higher than the same week a year ago, a pattern that suggests improving housing inventory is continuing to support buyer activity despite elevated mortgage rates.
Refinance demand moved lower, with the Refinance Index declining 2% from the previous week. Even so, refinance applications were still 7% above year-ago levels, indicating refinancing demand remains more resilient than it did a year earlier.
The report also cited mortgage-rate and mix changes: the 30-year conforming rate was 6.69%, its highest level since last August. The refinance share of mortgage activity decreased to 41.2% from 43.2%, the adjustable-rate mortgage share increased to 7.7% from 7.1%, and government-backed lending accounted for a slightly smaller share, with FHA at 17.0% (down from 17.7%) and VA at 13.2% (down from 13.6%), while USDA stayed at 0.5%.