The decline was fueled by an increase in refinancings, which rose to their highest level since August 2022. Meanwhile, applications rose 3.9% week over week as the market began to gain momentum.
After a prolonged cooling that continued through 2023, mortgage market activity has bounced back to healthy levels in the first few months of the year, according to Christine O'Neill (pictured above), senior loan officer at Richmond, Virginia-based Open Door Lending.
She told Mortgage Professional America that the market outlook is looking better than it has in a long time, although in recent weeks the typical midsummer slowdown has set in. “June and July were some of the strongest months we've had in a little over a year,” she said.
“There was a surge heading into the summer but it seems to be calming down a bit, but I think that's typical this time of year – there's often a lull for a few weeks as families go on holiday and take a break from house hunting.”
Mortgage applications rebounded 3.9% after two weeks of declining applications, according to the latest survey from the Mortgage Bankers Association.
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O'Neill suggested there appears to be growing optimism about the market on the borrower side, noting that he's seen streamlining on the refinancing side, particularly with the FHA and VA.