Mortgage applications increased 1.2% last week from one week earlier, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 29.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.2% on a seasonally adjusted basis from the prior week. On an unadjusted basis, the Index increased 1%. The Refinance Index increased 2% from the previous week and was 82% lower than the same week one year ago, according to the data.
The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 16% lower than the same week one year ago.
“Mortgage rates declined last week following another announcement of tighter monetary policy from the Federal Reserve, with the likelihood of more rate hikes to come. Treasury yields dropped as a result, as investors continue to expect a weaker macroeconomic environment in the coming months. The 30-year fixed rate saw the largest weekly decline since 2020, falling 31 basis points to 5.43 percent,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, adding that, despite the increases, “activity is still depressed.”
The refinance share of mortgage activity increased to 30.8% of total applications from 30.7% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.4 percent of total applications.