Purchase applications increased this week, albeit only slightly while higher mortgage rates linger and affordability challenges continue to vex the housing market.
According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) for the week ending July 18, the Market Composite Index (a measure of mortgage loan application volume) increased 0.8% from the previous week’s 10% decrease. On an unadjusted basis, the Index increased 1% compared with the previous week.
“The 30-year fixed mortgage rate edged higher last week to its highest level in four weeks at 6.84 percent, while rates for other loan types were mixed,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications finished the week higher, driven by conventional purchase loans, and continue to run ahead of last year’s pace.”
MBA also reported that the Refinance Index decreased 3% from the previous week and was 22% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 3% from one week earlier. The unadjusted Purchase Index increased 4% compared with the previous week and was 22% higher than the same week one year ago.
The refinance share of mortgage activity decreased to 39.6% of total applications from 41.1% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.2% of total applications.
Kan pointed out that the purchase loan amount has fallen to a low point for the year, which can be indicative of elevated interest rates and buyer hesitancy consistent with recent economic and housing market trends.
“After reaching $460,000 in March 2025, the purchase loan amount has fallen to its lowest level since January 2025 to $426,700,” Kan noted. “With the 30-year fixed rate still too high to benefit many borrowers, refinance applications were down almost three percent for the week.”
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