Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.94%0.01
Mortgage

Mortgage applications fell 1.8% ahead of FOMC meeting 

Purchase applications dropped 2.5% from the prior week, according to the MBA

As mortgage rates remained stubbornly high last week, hovering around 6.87%, mortgage applications fell from a week prior. For the week that ended July 21, mortgage applications fell 1.8% from the prior week, according to data from the Mortgage Bankers Association

“Mortgage rates were essentially flat last week but remained high, with the 30-year fixed staying at 6.87% and contributing to a pullback in mortgage applications,” said Joel Kan, MBA’s vice president and deputy chief economist.

The MBA said the 2.5% decline in purchase applications pushed the index to its lowest level in over a month. A 10% decrease in FHA applications partly prompted this drop. For the week ending July 21, the purchase index fell by 3% from one week earlier and was 23% lower than last year’s level on an unadjusted seasonal basis.

Kan added: “The decrease in FHA purchase applications contributed to an increase in the overall average purchase loan size to $432,700, its highest level since the end of this May.”

Refinancing applications remained lackluster — the index decreased 0.4% from the previous week and was 30% lower than the same week one year ago. Refi activity accounted for 28.7% of applications, up slightly from 28.4% last week.

At Mortgage News Daily, 30-year fixed-rate mortgage rates were at 7.04% on Wednesday morning, 17 basis point higher. At HousingWire’s Mortgage Rates Center, Optimal Blue had rates at 6.87% on Tuesday.

The Federal Housing Administration loans’ share increased to 12.7% from 13.6% the week prior. The U.S. Department of Veteran Affairs loans’ share remained unchanged at 12.1%. And the U.S. Department of Agriculture loans’ share also remained unchanged at 0.5%.

Adjustable-rate mortgages decreased to 5.9% of total loan applications last week, the MBA said. The average contract interest rate for 5/1 ARMs fell to 6.01% from 6.27% a week prior.

Observers expect the Federal Open Markets Committee to raise interest rates by 25 basis points on Thursday.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please