“Seasonally adjusted compared to the July 4th holiday week, mortgage applications were lower across the board, with purchase applications back to their lowest level since May 2020,” said Joel Kahn, AVP of Economic and Industry Forecasting. in the MBA. “Refinancing activity decreased over the week, but as rates remained relatively low, the number of applications was close to the highest level since early May 2021.”
Kahn explained that volatility in mortgage rates triggered a decline in mortgage applications.
“The yield on 10-year Treasuries fell sharply last week, in part as investors became more worried about the spread of COVID variants and their impact on global economic growth. As a result, there were mixed changes in mortgage rates: the 30-year fixed rate rose slightly to 3.11% after two weeks of decline, ”he said. “Other rates surveyed declined, with the 15-year fixed rate loan used by about 20% of refinancing borrowers fell to 2.46%, the lowest level since January 2021.”
The share of mortgage refinancing activities increased by eight basis points, to 64.9% of the total number of applications. The share of adjustable rate mortgages (ARM) fell to 3.3% of total applications.