Home purchase applications fall after prior week’s surge

US mortgage applications to buy a home declined last week to the lowest level since late May as borrowing costs remained elevated.

The Mortgage Bankers Association’s index of home-purchase applications slumped 11.8% in the week ended July 11, data from the group showed Wednesday. While that marked the biggest drop since 2022, it followed a 9.4% jump in the previous week that included Independence Day. The figures are prone to wide swings around holidays even though the data are adjusted for seasonal effects.

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MBA’s measure of refinancing, which also surged in the prior week, declined 7.4% from the highest level since April.

The contract rate on a 30-year fixed mortgage edged up 5 basis points to 6.82% last week. A sustained drop in…