Mortgage applications decreased 2.4% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 27.
The Refinance Index decreased 4% from the previous week and was 2% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 16% lower than the same week one year ago.
“Despite low rates, refinance applications declined, with some borrowers still waiting for rates to drop even lower,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels.”
The refinance share of mortgage activity decreased to 66.8% of total applications from 67.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.2% of total applications.
The FHA share of total applications increased to 11.2% from 11% the week prior. The VA share of total applications decreased to 9.7% from 10% the week prior. The USDA share of total applications increased to 0.5% from 0.4% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) remained unchanged at 3.03%, with points increasing to 0.34 from 0.29 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) remained unchanged at 3.13%, with points remaining unchanged at 0.26 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.09% from 3.10%, with points decreasing to 0.25 from 0.29 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 2.39% from 2.38%, with points increasing to 0.30 from 0.29 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 5/1 ARMs increased to 2.80% from 2.68%, with points decreasing to 0.13 from 0.24 (including the origination fee) for 80% LTV loans.
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