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MBA US Mortgage Applications Decline in Week Ended July 3 on Uptick in Mortgage Rates

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Mortgage applications fell by 2.2% in the week ended July 3, with refinancing activity and new home applications both pushed lower by an uptick in average 30-year fixed mortgage rates, according to Mortgage Bankers Association data released Wednesday.

This follows little change in overall activity in the week ended June 26. The current week's data includes an adjustment for the July 4th holiday.

Applications for refinancing loans fell by 4%, while new purchase applications slipped by a seasonally adjusted 1%.

The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less rose slightly to 6.58% from 6.57% in the previous week.

"After adjusting for the Independence Day holiday, government purchase volume increased modestly, led by a 5% gain in VA purchase applications, while conventional purchase activity declined," said Mike Fratantoni, MBA's senior vice president and chief economist. "Refinance application volume was down 4%, as homeowners saw little enticement to act with rates still elevated."

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