Key Takeaways
- Applications for mortgages jumped 9.4% for the week ending July 4, as purchase activity reached its highest level since 2023.
- The surge comes as mortgage rates fell to 6.77%, the lowest reading in three months.
- The average loan size on a purchase application fell to $432,600, the lowest since January.
With borrowing costs edging lower and home prices leveling off, buyers in July began returning to the housing market.
Demand for mortgages jumped 9.4% for the week ending July 4, adjusted for the holiday break, according to Mortgage Bankers Association data. The rise in loan applications came as rates for the 30-year fixed mortgage fell to 6.77%, the lowest levels in three months.
Applications for home purchases hit their highest levels since February 2023, while refinancing was up 56% from the same time last year. Meanwhile, the average loan size for on a purchase application fell to $432,600, its lowest level since January.
“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” said Joel Kan, MBA vice president and deputy chief economist.
The improving data comes as the housing market cools, with sales near a 30-year low as inventory piles up and prices continue to rise. But economists have said that lower mortgage rates could help improve sales, especially as prices flatten out.
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