Recent analysis from the National Association of Home Builders (NAHB) of the Mortgage Bankers Association’s (MBA) Market Composite Index shows that mortgage applications fell across all sectors in July.
Compared to June, applications decreased 6.6% and dropped 1.5% year-over-year, the first decline in two years.
With current 30-year fixed-rate mortgage rates at 6.69%, these dips in applications are largely attributed to growing economic pressures on consumers and geopolitical uncertainty with the war in Iran.
In July, the average loan price also fell across all categories.
“The overall loan size decreased 2.5% to $383,600,” wrote NAHB Forecasting and Analysis economist Catherine Koh. “The average purchase loan size fell 2.6% to $444,600, while the average refinance loan size declined 2.2% to $296,000.”
