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Mortgage applications fall again as higher rates curb demand
The Mortgage Bankers Association said total mortgage application volume slipped 2.9% for the week ending July 31, while the 30-year fixed rate rose to 6.81% after the July FOMC meeting.
Mortgage application activity declined for a second straight week, as higher borrowing costs continued to weigh on both home purchases and refinancing, according to Mortgage News Daily.
For the week ending July 31, the Mortgage Bankers Association reported total application volume fell 2.9% on a seasonally adjusted basis. Purchase applications dropped 4% from the prior week and were 3% lower than the same week a year earlier, reflecting reduced affordability despite improved housing inventory in some markets.
Refinance activity also softened, with the Refinance Index down 2% from the previous week and 9% below year-ago levels. Mortgage News Daily attributed the pressure to higher rates following the July FOMC meeting, when longer-term yields pushed the 30-year fixed mortgage rate to 6.81%.
Mortgage News Daily noted that rates have dropped so far in August, which it said could help next week’s data rebound, and reported 30-year fixed rates reached two-week lows on Wednesday before moving lower again on Friday in its daily rate tracking.