Mortgage Rates Back Near Long-Term Highs

Mortgage application activity pulled back last week as higher borrowing costs weighed on both home purchase and refinance demand. The Mortgage Bankers Association (MBA) reported a 6.4% decrease in total application volume on a seasonally adjusted basis for the week ending July 24. Purchase applications decreased 4% from the previous week on a seasonally adjusted basis but remained 3% higher than the same week one year ago. While housing inventory has improved in some markets, elevated mortgage rates continue to challenge affordability for many prospective buyers. Refinance activity weakened more sharply, with the Refinance Index falling 10% from the prior week and dropping 2% below year-ago levels. The decline suggests that fewer homeowners have an incentive to refi