Weekly Mortgage Applications See Significant Decline

The United States witnessed a notable 10% decrease in mortgage applications for the week ending July 11, as reported by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. This downturn highlights growing economic apprehensions among potential homebuyers and homeowners looking to refinance.

Interest Rates on the Rise

According to the survey, the average contract interest rate for 30-year fixed-rate mortgages climbed to 6.82%, up from 6.77% the previous week. This increment in rates is identified as a key factor contributing to the slowdown in application activities.

Impact on Purchase and Refinance Indices

The seasonally adjusted Purchase Index fell by 7.4% to 159.6, while the Refinance Index experienced an 11.8% drop, settling at 767.6. Overall, the Market Index declined by 9%, moving from 281.6 to 253.5.

Expert Analysis

Joel Kan, MBA's Vice President and Deputy Chief Economist, pointed out that Treasury yields ended higher last week, despite a mid-week decrease, partly due to renewed concerns over the economic impact of tariffs. This scenario led to an increase in mortgage rates after two consecutive weeks of declines, further dampening application activity.