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Published July 11, 2024
The latest data from the Mortgage Bankers Association (MBA) reveals a slight decline in mortgage applications last week, despite a marginal decrease in average mortgage rates. The MBA's Market Composite Index edged down by 0.2% for the week ending July 5, with the average 30-year fixed-rate mortgage dropping to 7%, a 0.3 percentage point decrease.
Although there was a modest 1% increase in home purchase applications compared to the previous week, driven mainly by rises in government-backed Federal Housing Administration (FHA) and Veterans Administration (VA) loans, refinancing activity saw a notable 2% decline.
Joel Kan, Deputy Chief Economist at the MBA, commented, “Despite significant home equity gains in recent years, current mortgage rates are not providing strong incentives for borrowers to refinance.”
The report highlights a nuanced trend in the housing market, where homebuying shows resilience amidst adjusted mortgage rates, while refinancing interest diminishes. This data reflects ongoing shifts in consumer behavior amid evolving economic conditions.