FX.co ★ Mortgage Applications Rise For First Time In 4 Weeks

Mortgage applications in the United States saw a rise in the week ending July 12, following a decline over the previous three weeks, according to the Mortgage Bankers Association's (MBA) weekly survey results released on Wednesday.

The MBA reported a 3.9 percent increase in mortgage applications from the prior week, rebounding from a previous 0.2 percent decrease. The Market Composite Index, which reflects the volume of mortgage loan applications, climbed 3.9 percent on a seasonally adjusted basis from the previous week. On an unadjusted basis, the surge was even more pronounced at 30 percent.

The Refinance Index saw a notable rise of 15 percent from the preceding week, marking a 37 percent increase compared to the same week a year earlier. Conversely, the seasonally adjusted Purchase Index fell by 3 percent week-over-week but experienced a 22 percent increase on an unadjusted basis.

"Mortgage rates declined last week due to recent indications of cooling inflation and the growing likelihood of Federal Reserve rate cuts later this year," commented Joel Kan.

"The 30-year fixed rate dropped to 6.87 percent, the lowest since March 2024."

Overall application activity grew by 4 percent, driven by a 15 percent increase in refinancing applications, reaching the highest level since August 2022.

"While FHA and VA refinance applications represented a significant portion of this growth, these likely involve recently originated loans with higher rates than those currently offered," Kan added.

"Despite the rate drop last week, purchase applications continue to lag, down 14 percent compared to the same period last year."

Additionally, the 15-year fixed-rate mortgage rate saw a decline, decreasing to 6.49 percent from 6.63 percent.