:max_bytes(150000):strip_icc()/GettyImages-2157834140-2d734805feec436c84b546db1326bfd5.jpg "Mortgage Demand Dips as Fewer Seek Refinancing")
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Key Takeaways
- Mortgage applications were lower by 3.9% last week, Mortgage Bankers Association data showed.
- Refinancing was lower by 7% and purchases were lower by 2%.
- Mortgage rates were unchanged at 6.82%.
Demand for mortgages slipped for a second week as homebuyers shied away from high borrowing costs.
The volume of mortgage applications decreased by 3.9% for the week ending July 26, according to data from the Mortgage Bankers Association (MBA). Refinancing decreased by 7% from the prior week while purchases were 2% lower.
Mortgage rates were unchanged at 6.82%, the MBA said. Unmoving borrowing rates discouraged refinancing activity which had been elevated in recent weeks, with Veterans Administration refinancing loans posting a sharp drop, said Mike Fratantoni, MBA senior vice president and chief economist.
“Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates,” Fratantoni said. “Purchase volume also dropped slightly because of ongoing affordability challenges.”