Mortgage applications dipped ever so slightly for the week ending July 24, down 0.8 percent from a week earlier, according to a report released Wednesday by the Mortgage Bankers Association.
MBA found that the Refinance Index decreased 0.4 percent from the previous week and was 121 percent higher than a year ago. The unadjusted Purchase Index decreased 1 percent and was 21 percent higher than a year ago.
“Mortgage rates remained near record lows for conventional loans last week, and refinances in the conventional sector continued to slightly increase. However, rates on FHA loans rose, leading to an almost 18 percent drop in FHA refinances,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Homebuyers stepped back slightly, and there was a larger drop in purchase application volume for FHA, VA, and USDA loans.”
The refinance share of mortgage activity increased to 65.1 percent of total applications from 64.8 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.2 percent of total applications.
The FHA share of total applications decreased to 9.6 percent from 10.8 percent the week prior. The VA share of total applications increased to 11.2 percent from 10.8 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior. “Prospective first-time buyers are being impacted more by the rising economic stress caused by the resurgence in COVID-19 cases, as well as the uncertainty on how the next round of government support will take shape,” Fratantoni said.