MBA: Application Volume Fell 4.6% Last Week, Refinancings Down 8%

Mortgage application volume decreased 4.6% on a seasonally adjusted basis during the week ending Aug. 16, compared to one week earlier, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, which covers more than 75% of all U.S. retail residential mortgage applications.

On an unadjusted basis, the index decreased 5%, compared with the previous week.

Refinancings also continue to drop, with volume decreasing 8% from the previous week. Refinancing activity has dropped more than 62% since reaching its peak during the week of May 3, due mainly to rising interest rates.

However, the refinance share of mortgage activity decreased only slightly to 62% of total applications, down from 63% the previous week.

The seasonally adjusted Purchase Index increased 1% from one week earlier, while the unadjusted Purchase Index decreased 0.4%. The unadjusted Purchase Index was 5% higher than the same week one year ago.

The adjustable-rate mortgage (ARM) share of activity increased to 6% of total applications.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.68%, compared to 4.56% the week prior.

The average rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.74% from the prior week's 4.57%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Authority increased to 4.4% from 4.25%.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.71% from 3.6%.

The average contract interest rate for 5/1 ARMs increased to 3.44% from 3.36%.

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