Mortgage applications continued their downward trajectory, falling 3.7% from a week earlier for the week ending July 26, the Mortgage Bankers Association said.
"Mortgage rates were little changed last week, but remain roughly one percentage point higher than they were three months ago," said Mike Fratantoni, MBA’s vice president of research and economics.
Furthermore, the refinance index dropped 4%, while the purchase index inched up 3% from last week.
"Refinance application volume continues to decline, with the refinance index now more than 55% lower than its recent peak, reaching the lowest level in over two years," added Fratantoni.
"Applications for home purchases dropped for the fourth time in five weeks, but purchase volume is running about 5% higher than last year at this time," he added.
Overall, the refinance share of mortgage activity remained at 63% of total applications.
The average contract interest rate for a 30-year, fixed-rate mortgage with a conforming loan balance remained unchanged at 4.58%.
In addition, the 30-year, FRM jumbo declined to 4.64%, from 4.66% the previous week.
The average 30-year, FRM backed by the FHA climbed to 4.30% from 4.28%.
Meanwhile, the 15-year, FRM increased to 3.67% from 3.63%, and the 5/1 ARM rose to 3.39% from 3.30% last week.