Mortgage loan application volume fell by 1.7% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows.
The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.7%. The adjusted purchase index dropped 4%, while the unadjusted purchase index increased by 14% and was 18% lower YOY.
The refinance index rose by 2% and made up 30.8% of total applications, down 80% from the same time last year. The overall refinance index was 5% lower than the average level reported in June, and refinances are expected to stay low.
ARM activity rose to 9.6% of total applications.
“Mortgage rates were mostly unchanged, but applications declined for the second straight week. Purchase applications for both conventional and government loans continue to be weaker due to the combination of much higher mortgage rates and the worsening economic outlook,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
“After reaching a record $460,000 in March 2022, the average purchase loan size was $415,000 last week, pulled lower by the potential moderation of home-price growth and weaker purchase activity at the upper end of the market.”
The FHA share of total applications fell to 11.7% from 12%. The VA share of total applications rose to 11.2% from 11.1%, while the USDA fell from 0.6% to 0.5%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 5.74%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances fell to 5.25% from 5.28%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased from 5.60% to 5.49%, and for 5/1 ARMs rose from 4.62% to 4.71%.
This week’s results include an adjustment for the observance of Independence Day.