Mortgage Applications Dip, Refinance Activity Down Almost 35% as Rates Remain Elevated


As the 30-year average mortgage rates teased 7% this past week, mortgage application activity saw a second-straight week of decreases, down 0.2% from last week’s 2.6% dip, according to the latest Weekly Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending July 5, 2024.

Last week’s results included an adjustment for the July 4th holiday.

This week’s numbers: 

  • The Market Composite Index, a measure of mortgage loan application volume, decreased 0.2% on a seasonally adjusted basis from one week earlier. 
  • On an unadjusted basis, the Index decreased 20% compared with the previous week. 
  • The Refinance Index decreased 2% from the previous week and was 28% higher than the same week one year ago. 
  • The seasonally adjusted Purchase Index increased 1% from one week earlier. 
  • The unadjusted Purchase Index decreased 19% compared with the previous week and was 13% lower than the same week one year ago.
  • The refinance share of mortgage activity decreased to 34.9% of total applications from 35.7% the previous week. 
  • The adjustable-rate mortgage (ARM) share of activity increased to 6.2% of total applications.
  • The FHA share of total applications decreased to 12.5% from 13.1% the week prior. 
  • The VA share of total applications increased to 13.7% from 12.9% the week prior. 
  • The USDA share of total applications increased to 0.4% from 0.3% the week prior.
  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.00% from 7.03%, with points decreasing to 0.60 from 0.62 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 7.13% from 7.11%, with points decreasing to 0.38 from 0.50 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.  
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.87% from 6.90%, with points decreasing to 0.92 from 0.95 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages increased to 6.63% from 6.56%, with points increasing to 0.61 from 0.54 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs decreased to 6.22% from 6.38%, with points increasing to 0.6 from 0.54 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

MBA’s take:

“The recent uptick in mortgage rates has slowed demand,” said Joel Kan, MBA’s vice president and Deputy Chief Economist. “Mortgage applications were essentially flat last week, as mortgage rates remained around 7%. Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates.”   





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