According to the Mortgage Bankers Association, the number of mortgage applications rose by 3.1% for the week ended August 1, which led to a rise in the demand for home loans. The rise comes after a 3.8% drop in applications the week before.
Freddie Mac also said that mortgage interest rates stayed rather stable at 6.72% for a 30-year fixed mortgage for the week ending July 31.

The Market Composite Index, which tracks the number of home loan applications, went up 3.1% from the week before when adjusted for the season. The Index went up 3% from the week before, without any changes.

The refinance index went up 5% from the week before and was 18% higher than the same week last year.

The purchasing index, which is adjusted for seasonal changes, went up 2% from the week before. The unadjusted purchasing index went up 1% from the week before and was 18% higher than the same week last year.

The number of homeowners who chose to refinance went up from 40.7% of all applications the week before to 41.5%. The share of adjustable-rate mortgages (ARMs) in total applications went up to 8.5%.

There was a little drop in applications for Federal Housing Administration loans, from 18.8% the week before to 18.5%.

The number of people applying for Veterans Affairs loans went up from 12.2% to 13.3% in the last week. There was also a small drop in USDA loan applications, from 0.6% the week before to 0.5%.

"Last week, mortgage rates went down because Treasury yields went down as economic data releases showed that the U.S. economy was getting weaker. Joel Kan, MBA's vice president and deputy chief economist, says, "As a result, the 30-year fixed rate fell for the third week in a row to 6.77 percent."

"Applications for refinancing rose to their highest level in four weeks after falling for the previous three weeks. The share of refinances went up to about 42%, which is the largest level since April.

Rates for contracts

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan sums ($806,500 or less) went down from 6.83% to 6.77%. For 80% loan-to-value ratio (LTV) loans, the points went down from 0.60 to 0.59, which includes the origination fee. The effective rate went down from last week.

The average contract interest rate for jumbo loans (more than $806,500) with 30-year fixed-rate mortgages went down from 6.74% to 6.65%. For 80% LTV loans, the points went up from 0.51 to 0.59, which includes the origination fee. The effective rate went down from last week.

The average contract interest rate for 30-year fixed mortgages guaranteed by the FHA went down from 6.56% to 6.47%. For 80% LTV loans, the points were down from 0.83 to 0.81 (including the origination fee). The effective rate went down from last week.

The average interest rate on a 15-year fixed-rate mortgage went down from 6.12% to 6.03%. For 80% LTV loans, the points went up from 0.64 to 0.66 (including the origination fee). The effective rate went down from last week.

The average contract interest rate for 5/1 ARMs went down from 6.22% to 6.06%. For 80% LTV loans, the points went down from 0.51 to 0.49, which includes the origination fee. The effective rate went down from last week.

"Borrowers wanted to take advantage of these lower rates, and the number of applications for both purchases and refinances went up over the week," Kan explains. "Purchasing activity continued to lead the way in 2024, as the number of homes for sale has been rising, which has helped homebuying. However, the recent weakness in the economy has made some potential homebuyers less interested."

Calculated mortgage rates

The economy takes a lot of things into account when figuring out mortgage rates, and the length of your loan will also affect the rate you can get.

Fannie Mae says that the 30-year mortgage rate is linked to the yield on the 10-year Treasury note. When the yield on the 10-year Treasury note changes, mortgage rates go too.

The yield on a 10-year Treasury note is based on what people think will happen to short-term interest rates in the economy over the life of the bond, plus a term premium.