A slight drop in interest rates is resuscitating the refinance market, but it is not doing much to juice home buying.
Total mortgage application volume decreased 1.9 percent for the week ending July 10 on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association (MBA). The previous week had an adjustment for the July 4 holiday, but it still caused a hiccup in the counting.
"Lenders did not take a uniform approach to the Saturday holiday, with some remaining open, while others closed. As a result, even with the adjustment, the weekly changes in the adjusted data have been more volatile in the past two weeks," noted Michael Fratantoni, chief economist for the MBA.
Mortgage refinancing applications increased 4 percent from the previous week, seasonally adjusted, while applications to purchase a home fell 8 percent. When comparing volume over the past two weeks, to smooth some of the holiday volatility, seasonally adjusted refinance applications rose 6.5 percent and purchase applications decreased by 1.4 percent.