A week-over-week drop in new mortgage applications was fueled by a decline in purchase-money applications as refinance activity ascended. The jumbo-conforming spread widened, and government share thinned.

During the seven-day period that finished on July 13, the Market Composite Index descended by 2.5 percent compared to the preceding week.

However the index, a measure of retail residential loan application volume, soared 22 percent from the week ended July 6 — which included July 4 — when seasonal factors aren’t considered.

Source: Mortgage Daily