According to the Mortgage Bankers Association's Weekly Applications Survey, mortgage rates showed little movement last week and were virtually unchanged from the week before. Rates for 30-year fixed-rate mortgages with conforming loan balances and FHA loans fell slightly, while rates for 15-year loans were flat from the previous week. Jumbo loans saw an increase from one week earlier. But though rates were steady, demand for mortgage applications fell. In fact, both refinance and purchase activity were down from the week before. The week-over-week drop puts demand for loans to buy homes 4 percent higher than at the same time last year. But, despite the improvement, analysts say application demand should be much higher, as the number of interested home buyers has grown. One explanation is that, though there are many buyers active in the market, they are having a harder time finding homes to buy, which has depressed demand for loans. As more homes become available to buy, the numbers will begin to catch up with the current level of interest in buying a home. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here. 

According to the Mortgage Bankers Association's Weekly Applications Survey, average rates for 30-year fixed-rate mortgages with conforming loan balances remained unchanged last week – though rates were up for mortgages backed by the Federal Housing Administration and 15-year fixed-rate loans. Still, despite those increases, demand for loans to buy homes jumped 6 percent from one week earlier. Overall, mortgage application demand was up 2.7 percent from the previous week, as a drop in refinance activity pulled total demand downward. Joel Kan, an MBA economist, told CNBC refinance activity has slowed as the market has become more purchase focused. “The refinance share of all applications dropped to 41.8 percent, its lowest share since May 2017 as we move further into a purchase-dominated market,” Kan said. Generally, refinance activity is more sensitive to rate fluctuations. So as rates have moved up, refinance demand has declined. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

The National Association of Realtors' Pending Home Sales Index measures the number of contracts to buy homes that are signed in any given month. Because it tracks signings and not closings, it's considered a good indicator of future existing home sales. In June, the index increased 1.5 percent, marking the first gain in three months. Lawrence Yun, NAR's chief economist, said the improvement is a welcome sign and hinted that prospective buyers might even be better positioned in coming months. “It appears the ongoing run-up in price growth in many areas and less homes for sale at bargain prices are forcing some investors to step away from the market,” Yun said. “Fewer investors paying in cash is good news as it could mean a little less competition for the homes first-time buyers can afford.” In other words, at a time when the supply of homes for sale is lower than normal, competition among buyers is already high in many markets. However, with fewer investors and all-cash buyers active in the market, there should be more room for traditional buyers to successfully find and close on a house. More here.

There are many parts to a healthy housing market. Whether you're talking about home prices, mortgage rates, new home construction, or another housing metric, each one of them have an effect on home buyers and sellers – even if some of those effects aren't as obvious as others. Take new home sales. If you're not looking to buy a new house, how does it affect you? Well, for one, when new homes are in demand, more new homes get built. And, when more new homes get built, the boosted inventory of homes for sale can help reduce price increases. For example, the current housing market's main challenge is too few homes for sale. Because inventory has been low in many markets, buyers have seen prices go up and choices decline. So, news that new home sales increased in June for the second straight month is encouraging because increasing sales could help spur more new homes to be built, which would help balance the market and keep prices from becoming not affordable for the average buyer. So, even if you aren't in the market for a new home, you could indirectly benefit from more new homes being bought and sold in your neighborhood. More here.