The rush to refinance home loans lost some steam last week, as mortgage rates lifted off their lows.
Even with less momentum, refinances are still driving business.
Total mortgage application volume fell 1.3 percent on a seasonally adjusted basis for the week. The Mortgage Bankers Association survey included an adjustment the previous week for the July Fourth holiday. Volume was up nearly 61 percent from the same week one year ago, thanks, in large, part to more refinances.
Applications to refinance a mortgage fell 1 percent for the week after rising nearly 24 percent in the past four weeks, since the Brexit vote crushed U.S. interest rates. Refinance volume is now up 105 percent from a year ago, when mortgage rates were nearly a full percentage point higher.
"Recent swings in mortgage rates have been relatively muted compared to Treasury rates, although on net both remain below their levels from just prior to the Brexit vote. Refinances fell slightly with rising rates last week, but the refinance share of 64.2 percent of applications was the highest since February of this year, as purchase volume was slow to come back following the July 4th holiday," said Mike Fratantoni, MBA's chief economist.