Mortgage application volume dipped 0.1% on an adjusted basis during the week ended Sept. 13, as the average rate for a 30-year fixed-rate mortgage increased to 4.01%, up from 3.82% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The drop in total volume was due to falling demand for refinances resulting from higher rates. Applications for refinances decreased 4% compared with the previous week but were still up 148% compared with the same week one year earlier.
Applications for purchases increased 6%.
On an unadjusted basis, total volume increased 10% compared with the previous week. Applications for purchases increased 16% on an unadjusted basis and were up 15% compared with the same week one year earlier.
“The jump in U.S. Treasury rates at the end of last week caused mortgage rates to increase across the board, with the 30-year fixed-rate mortgage climbing to 4.01 percent – the highest in seven weeks,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Refinancing activity dropped as a result, driven solely by conventional refinances.
“The purchase index increased for the third straight week to its highest reading since July,” Kan adds. “Additionally, the average loan amount on purchase applications increased to its highest level since June. This is a likely a sign that the underlying demand for buying a home remains strong, despite some of the recent volatility we have seen.”
The refinance share of mortgage activity decreased to 57.9% of total applications, down from 60.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.0% of total applications.
