Mortgage application activity was mostly lethargic for the week ending July 3, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 2.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was down by 12%.
The seasonally adjusted Purchase Index dipped by 1% from one week earlier while the unadjusted index was 11% lower – the latter was also 5% higher than the same week one year ago.
The adjusted Refinance Index fell 4% from the previous week but was 8% higher unadjusted than the same week one year ago. The refinance share of mortgage activity decreased to 40.6% of total applications from 41.4% in the previous week.
Among the federal programs, the FHA share of total applications decreased to 16.4% from 16.9% the week prior while the VA share of total applications inched up to 13.0% from 12.9% and the USDA share of total applications wiggled up to 0.5% from 0.4%.
“Mortgage application volume was little changed during the week of the nation’s 250th Independence Day celebration, as the 30-year fixed rate increased slightly to 6.58 percent,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “After adjusting for the Independence Day holiday, government purchase volume increased modestly, led by a 5% gain in VA purchase applications, while conventional purchase activity declined. Refinance application volume was down 4%, as homeowners saw little enticement to act with rates still elevated.”
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