Mortgage applications decreased 5.2 percent nationwide for the week ending July 1, according to weekly data from the Mortgage Bankers Association. Refinancing also fell 9.2 percent from the previous week, marking three consecutive weeks of decreases and its lowest level since May 6.
The refinance share of mortgage activity decreased to 66.4 percent of total applications from 69.5 percent the previous week. The adjustable-rate mortgage share of activity increased to 6.1 percent from 5.8 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.69 percent from 4.46 percent. The average contract interest rate for 15-year fixed-rate mortgages increased to 3.79 percent from 3.64 percent.
“Refinance activity, already constrained by a smaller pool of eligible borrowers, declined in response to the higher rates, but purchase applications picked up appreciably in the week before the July 4th holiday,” said Michael Fratantoni, MBA’s vice president of research and economics. — Katherine Clarke