After falling dramatically the week of Labor Day, then bouncing back impressively the following week, mortgage application volume fell again during the week ending Sept. 19, driven mainly by a drop in applications for refinances, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
Applications for refinances dropped 7% from the previous week, while applications for purchases decreased 0.3%.
Overall, volume decreased 4.1% on an adjusted basis and 5% on an unadjusted basis.
On an unadjusted basis, purchase application volume dropped 2% compared with the previous week and was 16% lower compared to the same week one year ago.
The refinance share of mortgage activity decreased to 56% of total applications from 57% the previous week.
The decrease in applications for refinances coincided with an increase in mortgage interest rates. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.39%, up from 4.36% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.30%, up from 4.24% the previous week.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.08%, up from 4.03% the week prior.
The average rate for a 15-year FRM remained unchanged at 3.56%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.20%, up slightly from 3.19% the previous week.
The ARM share of activity increased to 8% of total applications.
All rates are based on closings.