Mortgage application volume declines to begin July
Activity in the Houston real estate market likely slowed to start July, as mortgage application volume dropped.
Both requests for purchases and refinancing declined in the week ending July 5, which led to a 4 percent decrease in the Market Composite Index, according to the Mortgage Bankers Association Weekly Mortgage Applications Survey.
The Refinance Index dipped 4 percent from the previous week, bringing down the refi share of all activity to 64 percent. Meanwhile, the Purchase Index was down 3 percent in the same period, as mortgage rates have been rising.
Despite fewer purchase applications, Freddie Mac vice president and chief economist Frank Nothaft said affordability remains high, so buying activity could pick up in the near future.
"Fixed mortgage rates fell over the holiday week as market concerns over the timing of the Federal Reserve's pullback in bond purchases eased somewhat.," Nothaft said. "Rates are still low by historical standards and should continue to aid in housing affordability and the ongoing recovery of the housing market."
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