US mortgage applications were unchanged in the final full week of June, according to data from the Mortgage Bankers Association, as relatively stable mortgage rates kept overall activity flat. The average rate on the benchmark 30-year fixed mortgage edged down by 2 basis points to 6.57%, reflecting only a modest move over the period.
Mortgage rates held steady despite a decline in long-term Treasury yields driven by lower energy prices, as hawkish signals from Federal Open Market Committee (FOMC) members limited any significant shift into the credit markets. Refinancing activity, which is particularly sensitive to short-term rate movements, slipped by 0.6%. In contrast, mortgage applications for home purchases rose 0.5%.