Mortage Purchase Applications Fall, Refinancing Rises Slightly

Purchase applications for home mortgages fell a seasonally adjusted 1 percent in the July 20 week, while applications for refinancing increased by 1 percent from the previous week. Unadjusted, purchase applications were 2 percent higher than in the same week a year ago. The refinance share of mortgage activity rose 0.3 percentage points from the prior week to 36.8 percent. The average interest rate for 30-year fixed rate conforming mortgages ($453,100 or less) remained unchanged at 4.77 percent. Purchase applications dipped into negative year-on-year territory in June and while managing to post modest gains compared to the year ago level in recent weeks, the jump in financing costs by more than a half of a percentage point since the start of the year (though roughly unchanged since April) is likely to continue to suppress homebuyer appetites. Later this morning, the release of the New Home Sales report for June will provide further insights into homebuyer activity.