WASHINGTON— U.S. mortgage applications increased 3.1% last week as mortgage rates fell for the third consecutive week, according to the Mortgage Bankers Association.
The MBA’s weekly survey for the week ending Aug. 1 showed the refinance index rose 5% from the previous week and was up 18% from a year earlier. Refinance applications accounted for 41.5% of all applications, the highest share since April.
“Refinance applications increased to their strongest pace in four weeks after being on a downward trend the prior three weeks,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
Kan said the 30-year fixed mortgage rate dropped to 6.77% last week, following a decline in Treasury yields and softening economic data.
‘Buyers Remain Cautious’
“Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week,” Kan said. “Purchase activity continued to lead 2024’s pace, as increasing for-sale inventory has supported homebuying, though some buyers remain cautious due to recent economic weakness.”
The seasonally adjusted purchase index rose 2%, while the unadjusted index was up 1% from the prior week and 18% higher than the same week a year ago.
The Details
According to the MBA:
By loan type:
- Adjustable-rate mortgages (ARMs) rose to 8.5% of total applications.
- FHA loans dropped slightly to 18.5% from 18.8%.
- VA loan share increased to 13.3% from 12.2%.
- USDA loan applications declined to 0.5% from 0.6%.
Average contract interest rates also decreased across all mortgage types:
- Jumbo loans: 6.65%, down from 6.74%
- FHA-backed 30-year fixed: 6.47%, down from 6.56%
- 15-year fixed: 6.03%, down from 6.12%
- 5/1 ARMs: 6.06%, down from 6.22%
The MBA’s weekly survey covers more than 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.
