There was less activity on the mortgage applications front for the week ending July 26, according to new data from the Mortgage Bankers Association (MBA).
The Market Composite Index decreased by 1.4 percent on a seasonally adjusted basis from one week earlier, while the adjusted index fell by an even one percent. Both the seasonally adjusted and unadjusted Purchase Index decreased by three percent from one week earlier, while the latter was also six percent higher than the same week one year ago. The unadjusted Refinance Index inched up by a scant 0.1 percent from the previous week and was 84 percent higher than the same week one year ago, while the refinance share of mortgage activity increased to 50.5 percent of total applications from 49.8 percent the previous week.
Among the federal programs, the FHA share of total applications remained unchanged at 11.3 percent from the week prior while the VA share of total applications decreased to 12.6 percent from 13.1 percent and the USDA share of total applications remained unchanged at 0.6 percent from the week prior.
"While purchase activity was still up six percent from a year ago, the index has now decreased for three straight weeks and reached its lowest point since March," said MBA Associate Vice President of Economic and Industry Forecasting Joel Kan. "Despite healthy demand, inadequate supply levels continue to hold back some would-be buyers. Refinance applications were essentially flat, but the components told different stories. Conventional refinances were up 1.1 percent, but government refinances were down almost three percent, led by a drop in VA applications."