Mortgage applications in the United States went down by 1.8% on a seasonally adjusted basis in the week ending July 21, the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey revealed in its report published on Wednesday.
The Market Index came in at 206.9 compared to the previous week's 210.7. In the same timeframe, the Purchase Index dropped from 163.2 to 159.2. The Refinance Index landed at 444.5 from the past week's 446.4. The 30-year mortgage rate remained unchanged at 6.87%.
"The 2.5 percent decline in purchase activity, partly driven by a 10 percent decrease in FHA [Federal Housing Administration] applications, pushed the purchase index to its lowest level in over a month. ... Many borrowers remain on the sidelines given current rates and persistent affordability challenges, " MBA Vice President and Deputy Chief Economist Joel Kan said.
