Weekly mortgage demand slips 2.9% as rates climb past 6.8%

Mortgage applications decreased 2.9% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending July 31. On an unadjusted basis, the index decreased 3% compared with the previous week. The refinance index decreased 2% from the previous week and was 9% lower than the same week one year ago. The seasonally adjusted purchase index decreased 4% from one week earlier. The unadjusted purchase index decreased 4% compared with the previous week and was 3% lower than the same week one year ago. “In the wake of the July FOMC meeting, longer-term rates increased, with mortgage rates reaching their highest level in more than a year, with the 30-year fixed mortgage rate rising to 6.81%,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Application volume for both refinance and purchase loans declined for the week and are now running behind last year’s pace, indicating that higher mortgage rates have weakened overall demand.” The refinance share of mortgage activity increased to 39.9% of total applications, up from 39.5% the previous week. The adjustable-rate mortgage (ARM) share of activit...