The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. climbed 6.9 per
cent in the week that ended August 2, following a 3.9 per cent decline the week before. This
was the first weekly gain in mortgage applications in three weeks, the pace of
which was also the biggest since the week ended June 7 (+15.6 per cent).
According to
the MBA’s data, last week’s increase in mortgage applications was primarily driven by a 15.9 per cent jump in mortgage refinance applications. In addition, mortgage applications to purchase a
home rose 0.8 per cent.
The report also
revealed that the average fixed 30-year mortgage rate dropped from 6.82 per cent to 6.55
per cent, the lowest level since the week ended May 5, 2023 (6.48 per cent).
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted mortgage rates decreased across the board last week, following
dovish communication from the Federal Reserve and a weak U.S. July jobs report,
which added to increased concerns of an economy slowing more rapidly than
expected.