Mortgage Rates Fall as Applications Rise!

Mortgage rates fell again in the MBA's latest survey though borrowing costs are up 44% from a year ago. The 30-year fixed-rate mortgage fell to 5.43% from 5.74% with 0.65 points for the week ended July 29, 2022. It was the largest one week drop since 2000. Within the data it showed that the Market Composite Index, a measure of total mortgage application volume, rose 1.2%, the Refinance Index increased 1.5% and the Purchase Index was up 1%. Spokesperson Joel Kan said, "Lower mortgage rates, combined with signs of more inventory coming to the market, could lead to a rebound in purchase activity."

The closely watched service sector of the U.S. economy remained positive in July as the sector grew for the 26th month in a row. The ISM Service Index rose to 56.7 last month versus the 53.5 expected and up from 55.3 in June. A reading above 50 indicates the services sector economy is generally expanding; below 50 percent indicates the services sector is generally contracting. A spokesperson said, "Availability issues with overland trucking, a restricted labor pool, various material shortages and inflation continue to be impediments for the services sector."

 

Mortgage rates decline. Mortgage application volume increases. The service sector remains strong.