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The
Mortgage Bankers Association (MBA) said on Wednesday its
seasonally adjusted market index rose 16.0% in the week ending
on July 9 from a week earlier. This reflected a 20.4% increase
in applications to refinance existing loans and an 8.3% rise in
applications to purchase a home.
The average contract interest rate for traditional 30-year
mortgages decreased to 3.09% last week, the lowest level since
February, from 3.15% the prior week. This week's data included
an adjustment for the Fourth of July holiday.
"There may have been a delayed spillover of applications from
the previous week, when rates also decreased but there was not
much of response in terms of refinance applications," Joel Kan,
MBA's associate vice president of economic and industry
forecasting, said in a statement. "Purchase applications
increased last week, but average loan sizes decreased to their
lowest level since January 2021."
This week's data comes just one week after the number of
applications for home mortgages decreased to the lowest level
since January 2020.
Rising home prices combined with insufficient supply has
continued to weigh on the housing market.
"We continue to see ebbs and flows as housing demand remains
strong but for-sale inventory remains low," Kan said. "However,
lower rates may be helping some home buyers close on their
purchases, especially first-time home buyers."
(Reporting by Evan Sully; Editing by Leslie Adler)
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