US mortgage applications to buy a home declined last week to the lowest level since late May as borrowing costs remained elevated.
The Mortgage Bankers Association's index of home-purchase applications slumped 11.8% in the week ended July 11, data from the group showed Wednesday. While that marked the biggest drop since 2022, it followed a 9.4% jump in the previous week that included Independence Day. The figures are prone to wide swings around holidays even though the data are adjusted for seasonal effects.
READ MORE:
MBA's measure of refinancing, which also surged in the prior week, declined 7.4% from the highest level since April.
The contract rate on a 30-year fixed mortgage edged up 5 basis points to 6.82% last week. A sustained drop in financing costs is needed to spur a housing market that's also restrained by limited affordability, economists say.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
