FINWIRES · TerminalLIVE
FINWIRES

MBA US Mortgage Applications Decline in Week Ended July 24 as Mortgage Rates Rise Further

By

Mortgage applications fell by 6.4% in the week ended July 24, with both refinancing activity and new home applications pushed lower by an increase in 30-year fixed mortgage rates, data released by the Mortgage Bankers Association Wednesday showed.

This follows a 1.9% increase in overall activity in the week ended July 17.

Applications for refinancing loans fell by 10%, while new purchase applications declined by a seasonally adjusted 4%.

The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less rose to 6.76% from 6.69% in the previous week, hitting its highest point since August according to MBA.

"This upward trajectory in rates continues to significantly impact refinance borrowers, with a 10% decline in refinance applications, including a steeper drop in government refinances," said Joel Kan, MBA's vice president and deputy chief economist. "Despite housing inventory increasing in certain markets, higher rates have added to ongoing affordability challenges for many homebuyers, which drove the decrease in purchase activity over the week."

Related Articles

International

Singapore Export Prices Rise 12.7 in June, Import Prices Up 13.6%

Singapore's export prices rose 12.7% year over year in June, according to data from the Singapore Department of Statistics on Wednesday.The latest pace of expansion eased from the 14.6% rise in May, missing the 13.7% growth forecast by Trading Economics.Meanwhile, import prices edged up 13.6% year over year, slowing from the 18.5% increase in May.

^STI
International

Singapore's Producer Price Inflation Slows in June

Factory-gate prices in Singapore were mixed in June, with the Domestic Supply Price Index rising 30.3% year over year, while the Singapore Manufactured Products Price Index increased 31.1%, according to the Singapore Department of Statistics on Wednesday.The Domestic Supply Price Index growth eased from the 34.1% increase logged in May, and missed the Trading Economics forecast for a 33% increase.The Manufactured Products Price Index expansion accelerated from the 30.9% growth recorded in May.On a month-on-month basis, the Domestic Supply Price Index fell 2.5% in June after declining 2.0% in May, while the Singapore Manufactured Products Price Index slipped 0.7%, extending the 0.2% decline recorded in May.

^STI
International

Australia's Inflation Increases 3.8% in Year to June

Australia's consumer price index (CPI) rose 3.8% in the 12 months to June from a 4% increase in the year to May, the Australian Bureau of Statistics reported Wednesday.The largest contributor to annual inflation was housing, which rose 6.8%, followed by food and non-alcoholic beverages and recreation and culture, both up 3.3%.Annual housing inflation was primarily driven by rising costs for electricity and new dwellings.Electricity remains a major driver of annual inflation, with prices over 22% higher than a year ago, largely due to the end of government rebates that had previously lowered household electricity bills, said Rachael McCririck, the bureau's head of prices statistics.Trimmed mean annual inflation was 3.6% in the 12 months to June, unchanged from the 12 months to May.Transport inflation eased notably, with the annual rate slowing to a 0.1% increase, compared with a 3.3% rise in May."Lower world oil prices as a result of some stabilization in the Middle East in June contributed to fuel prices falling 10.9% in the month," McCririck added.The CPI declined by 0.1% in seasonally adjusted terms during the month of June.

ASX 200