The volume of mortgage applications fell further last week, due to a weak labor market and tightening credit rules.
Monitoring of the weekly survey buy loans saw a seasonally adjusted decline of 2 percent during the last week of July.
The Mortgage Bankers Association’s measure, known as the Buy Index, is still up 20% year-over-year, according to Joel Kan, head of MBA industry forecasting. This is the eleventh week of consecutive annual increases, although the weekly volume fell during the last two weeks of July.
Kan noted that the size of the purchase loan is increasing. The average loan amount was $ 366,500 last week, up from $ 364,600 last week. He said this could be “a sign that the still weak job market and the credit crunch for government loans are forcing some first-time homebuyers.”
Refinancing activity also fell last week. MBA’s seasonally adjusted refinancing index was down 7% from the previous week, although it was up 84% from the same week in 2019.
The drop came even as rates continued to drop to a new record high in the history of the Weekly MBA Survey, which has been conducted since 1990 and covers 75 percent of the United States. residential market.
The average rate on a 30-year fixed-rate mortgage was 3.14% last week, down from 3.20 a week earlier. Jumbo rates fell 1 basis point to 3.51%.
Kan said he expects rates to stay low and that, in turn, will ultimately lead to requests for refinancing.
The overall MBA index of all mortgage applications fell 5.1%, seasonally adjusted, from the previous week.
Write to Erin Hudson at [email protected]