For the second week in a row, mortgage applications were on the rise, according to new data from Mortgage Bankers Association (MBA)
that measured market activity for the week ending July 21.
The Market Composite Index saw a 0.4 percent uptick on a seasonally adjusted basis from one week earlier while the unadjusted index took a one percent increase.
The seasonally adjusted Purchase Index fell by two percent to the lowest level since May. The unadjusted Purchase Index also decreased by two percent, but it was eight percent higher than the same week one year ago.
The Refinance Index saw a three percent rise while the refinance share of mortgage activity increased to 46 percent of total applications from 44.7 percent the previous week.
Among the federal programs, the FHA share of total applications decreased to 10.2 percent from 10.7 percent the week prior while the VA share of total applications decreased to 10.5 percent from 10.7 percent and the USDA share of total applications increased to 0.8 percent from 0.7 percent.
"Mortgage rates dropped to their lowest level in a month last week, which led to a slight increase in refinance volume," said MBA Chief Economist Mike Fratantoni. "Purchase applications decreased for the week to their lowest level since May, amid further signs that tight housing inventory is constraining transaction volume. Purchase application volume remains eight percent higher than one year ago in units, 12 percent higher in terms of dollar volume, bolstered by a strong job market and rising home prices."