Mortgage Application Activity Slows Down

Fewer prospective homebuyers were filling out mortgage applications during the week ending July 25, according to data from the Mortgage Bankers Association (MBA).

The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 3.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index decreased 4% compared with the previous week.

Both the seasonally adjusted and the unadjusted Purchase Index decreased 6% from one week earlier – the latter was also 17% higher than the same week one year ago. The Refinance Index dipped 1% from the previous week and was 30% higher than the same week one year ago, while the refinance share of mortgage activity inched up to 40.7% of total applications from 39.6% the previous week.

The federal mortgage programs remained mostly flat – the FHA share of total applications increased to 18.8% from 18.7% the week prior while the VA share of total applications decreased to 12.2% from 12.6% and the USDA share of total applications remained unchanged at 0.6% from the week prior.

“Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week. There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions,” said Joel Kan, MBA’s vice president and deputy chief economist.