The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. plummeted 10.0 per
cent in the week ending July 11, following a 9.4 per cent surge in the week before. This marked the first weekly drop in mortgage
applications in four weeks, the pace of which was also the steepest since mid-April.
According to
the MBA’s data, last week’s decline in mortgage applications reflected
an 11.8 per cent tumble in mortgage applications to purchase a home and a 7.4 per cent plunge in mortgage
refinance applications.
The report also
revealed that the average fixed 30-year mortgage rate increased from 6.77 per cent
to 6.82 per cent, the highest level in three weeks.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that Treasury yields finished higher last week on average
despite an intra-week drop, driven partly by renewed concerns about the impact of
tariffs on the economy. “As a result, mortgage rates rose after two weeks of
declines, which contributed to slower application activity,” he added. “Refinance
applications also dipped because of higher rates, with refinance applications
falling, led by VA refinances, partially reversing their previous week’s gain,
dropping 22 per cent.”