Mortgage applications fall 2.9% to 6.81%

Mortgage applications fell last week as borrowing costs climbed to their highest level in more than a year, according to Mortgage Bankers Association data published on August 5. The group said total application volume dropped 2.9% on a seasonally adjusted basis in the week ended July 31. The average contract rate for a 30-year fixed mortgage with conforming loan balances rose to 6.81% from 6.76% a week earlier. Purchase applications fell 4% and refinance applications slipped 2%, HousingWire reported, citing the MBA survey. ### Which number mattered most in this week’s mortgage data? The 6.81% average rate on a 30-year fixed loan was the clearest pressure point in the week’s report. The MBA said that rate increase helped push overall application activity lower and left total volume 5% below the same week a year earlier. CNBC reported the rate was the highest level in more than a year. (housingwire.com) Fortune’s daily mortgage snapshot for August 5 showed a separate market-based reading: the average rate for a 30-year fixed conforming mortgage loan was 6.777%, while the average 15-year fixed conforming rate was 5.847%. Fortune said its figures were current as of August 5 and were based on mortgage-market data used in its weekday rate tracker. ### Was the weakness coming from buyers or refinancers? (newslink.mba.org) Purchase demand did more of the falling. The MBA data showed purchase applications dropped 4% from the prior week and were 3% lower than the same week a year earlier, while refinance applications fell 2%. HousingWire said the decline in purchase activity came as rates moved back above 6.8%. The MBA’s weekly survey tracks applications for home purchase and refinancing, not closed loans. (fortune.com) Mortgage News Daily describes the series as a weekly index covering purchase, refinance, conventional and government application activity, making it an early read on borrower demand rather than a count of completed sales. ### What did the broader housing data show beyond mortgage demand? (housingwire.com) HousingWire reported on August 5 that housing data through July 31 pointed to four distinct pricing patterns across 298 metro areas. The outlet said the national median asking price for active single-family listings was $449,000 for the week ended July 31, down 0.4% from $451,000 a year earlier, while the median price of newly listed homes was $419,900, up 1.2% from $415,000. (mortgagenewsdaily.com) HousingWire said 71 of the 298 metros — nearly one in four — showed diverging pricing signals between new listings and active inventory. Rachel Bader and HW Data wrote that the split patterns highlighted where local markets were strengthening, softening or moving in different directions than the national median suggested. ### Why are national averages and local markets telling different stories? (housingwire.com) The 298-market breakdown showed that national price measures can flatten out while local conditions separate. HousingWire said the four-pattern framework compares new listings, active inventory and pending activity to identify where supply is building, where sellers are holding firm and where demand is still supporting prices. (housingwire.com) The weekly mortgage figures and the metro pricing data are measuring different parts of the market. The MBA survey captures current financing demand, while HousingWire’s market data tracks listing and price behavior through July 31. Taken together, the reports showed higher rates weighing on applications even as local inventory and pricing conditions remained uneven. ### When is the next data point due? (housingwire.com) The Mortgage Bankers Association releases its weekly applications survey each Wednesday, and the August 5 report covered activity through July 31. HousingWire’s pricing analysis said its latest metro-level housing data also ran through July 31 across 298 markets. Fortune said it updates its mortgage-rate snapshot each business day when data is available. (newslink.mba.org) (housingwire.com)