Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey revealed a 1.1 percent rise in mortgage applications compared to the previous week. The survey, covering the week ending July 14, 2023, included an adjustment for Independence Day in the previous week’s results..
On a seasonally adjusted basis, the Market Composite Index, which measures mortgage loan application volume, saw a 1.1 percent increase from the previous week. When considering the unadjusted figures, the Index showed a substantial 27 percent increase compared to the previous week. Looking at the Refinance Index, it experienced a 7 percent increase from the previous week but remained 32 percent lower than the same week one year ago. As for the seasonally adjusted Purchase Index, it declined by 1 percent compared to the previous week. Despite remaining 21 percent below the same week last year, the unadjusted Purchase Index demonstrated a significant 24 percent increase compared to the previous week.
Joel Kan, MBA’s Vice President and Deputy Chief Economist, remarked that mortgage rates experienced a decline in the previous week, attributed to the positive market response to incoming data reflecting a continued cooling of U.S. inflation. The survey revealed a decrease in the majority of rates, with the 30-year fixed rate reaching 6.87 percent. Refinance applications experienced a substantial increase of over 7 percent, but they accounted for only 28 percent of all applications, trailing more than 30 percent behind last year’s rate. Despite the observed lower rates last week, purchase applications declined due to the persisting challenges of low housing supply and rates that remained substantially higher compared to a year ago.
30-year fixed-rate mortgage average dropped from 7.07% to 6.87%. Additionally, points, including the origination fee, decreased from 0.74 to 0.66 for loans with an 80 percent loan-to-value ratio (LTV).