Mortgage applications in the United States increased by 6.9% in the week ending August 2, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey published on Wednesday.
The average contract interest rate for 30-year fixed-rate mortgages stood at 6.55% compared to 6.82% the previous week. The purchase index grew by 1.1 points to 133.9, while the refinance index jumped to 661.4 compared to 570.7 the previous week.
"Mortgage rates decreased across the board last week... following doveish communication from the Federal Reserve and a weak jobs report, which added to increased concerns of an economy slowing more rapidly than expected," MBA Deputy Chief Economist Joel Kan said. "Despite the downward movement in rates, purchase activity only saw small gains, with an increase in conventional purchase applications offset by decreases in government purchase applications."
