After increasing slightly the week before, mortgage application volume dropped 4.7% last week on an adjusted basis, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume for the week ending Aug. 9 decreased 5% compared with the previous week. Historically, mortgage application volume drops in the late summer, when many people are on vacation.
Refinancings decreased 4% from the previous week, and the refinance share of mortgage activity remained unchanged at 63%.
The purchase index decreased 5% on a seasonally adjusted basis and decreased 6% on an unadjusted basis. This is 4% higher compared to the same week one year ago.
Adjustable rate mortgages increased to 6% of total applications. The government share of purchase applications was 29%. The MBA noted that this is well below the long-term average of the series at 38%.
The Home Affordable Refinance Program share of refinance applications decreased to 35% from 36% the week prior.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.56%, compared with the prior week's 4.61%.
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