Weekly purchase-money loan applications were affected more than refinances from a week-over-week drop in mortgage applications. Government share widened, as did the jumbo-conforming spread.

A seasonally adjusted 2.6 percent decline from the preceding seven-day period was recorded for the Market Composite Index that covered the week ended July 27.

The index, a measure of retail residential loan applications based on a more than three-quarters sampling of all applications, still saw a 3 percent drop even when seasonal factors are disregarded.

Source: Mortgage Daily