U.S. mortgage applications fell for a third straight week despite increased buying activity, according to a weekly survey released Wednesday by the Mortgage Bankers Association.
Mortgage applications for the week ending July fell 0.2% after a 2.6% decline the previous week, the MBA said. The latest week's results include an adjustment for the Fourth of July holiday.
The composite market index, which measures mortgage application volume, fell 0.2% from the previous week on a seasonally adjusted basis and was down 20% on an unadjusted basis.
The refinance index was down 2% from the previous week but up 28% from the same week a year ago. Refinance applications fell for the fourth consecutive week as interest rates rose, according to the MBA.
“Although home equity values have risen significantly in recent years, most borrowers have little incentive to refinance at current interest rates,” said Joel Kang, MBA vice president and deputy chief economist.
The seasonally adjusted purchasing index rose 1% from the previous week, but was down 19% unadjusted.
The average interest rate on a 30-year fixed-rate mortgage fell to 7.00% from 7.03% the previous week.
“Demand has slowed due to the recent increase in mortgage rates. Mortgage applications remained roughly flat last week as mortgage rates hovered around 7 percent,” Kang said.
“Purchasing activity increased slightly, primarily due to an increase in FHA and VA applications.”
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