Core Viewpoint - The number of mortgage applications in the U.S. has significantly decreased due to persistently high borrowing costs, reaching the lowest level since late May [1] Group 1: Mortgage Application Trends - The Mortgage Bankers Association (MBA) reported an 11.8% drop in the mortgage application index for the week ending July 11, marking the largest decline since 2022 [1] - This decline follows a 9.4% increase in the previous week, which included the Independence Day holiday, indicating volatility around holiday periods [1] Group 2: Refinancing and Interest Rates - The refinancing mortgage application index fell by 7.4%, after reaching its highest level since April in the prior week [1] - The contract rate for a 30-year fixed mortgage slightly increased by 5 basis points to 6.82% [1] Group 3: Economic Implications - Economists suggest that the ongoing high borrowing costs are constraining affordability, and a decrease in financing costs is crucial for stimulating the real estate market [1]

Core Viewpoint - The decline in mortgage rates has led to an increase in mortgage applications in the U.S., marking the first growth in four weeks [1] Group 1: Mortgage Application Trends - The purchase application index surged by 11.1%, the largest increase since January of this year [1] - The refinancing index also experienced a similar rate of growth [1] Group 2: Interest Rate Movements - As of the week ending May 2, the 30-year mortgage contract rate decreased by 5 basis points to 6.84% [1] - The five-year adjustable mortgage rate increased but remains below mid-April levels [1] Group 3: Market Influences - Mortgage rates are following the trend of U.S. Treasury yields, which have mostly declined over the past week [1] - Investors are awaiting comments from Federal Reserve Chairman Jerome Powell regarding the officials' stance on interest rates [1]