After increasing 4.6% the previous week, mortgage application volume fell 1.9% on an adjusted basis during the week ended July 10, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume increased 9% compared with the previous week, which included the Fourth of July holiday.
Applications for refinances increased 4% while applications for purchases decreased 8%.
On an unadjusted basis, applications for purchases increased 3% compared with the previous week and were up 17% compared to the same week one year ago.
Comparing volume over the previous two weeks, seasonally adjusted purchase applications decreased by 1.4% while applications for refinances increased 6.5%.
The refinance share of mortgage activity increased to 50.8% of total applications, up from 48.0% the previous week.
The increase in applications for refinances was likely driven by a slight decrease in mortgage interest rates that took place two weeks ago. This past week, mortgage rates increased slightly, but remained more or less flat compared to the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) remained unchanged from the previous week at 4.23%.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.20%, up slightly from 4.18% the week prior.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 4.02%, up from 4.01%.
The average rate for a 15-year FRM was 3.43%, up slightly from 3.41%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.13%, up from 3.03%.
The ARM share of activity increased to 7.4% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 13.8%, up from 13.7% the week prior. The Veterans Affairs' share of total applications was 10.8%, unchanged from the week prior. The U.S. Department of Agriculture's share of total applications was 0.9%, unchanged from the week prior.