After increasing an impressive 11.3% the previous week, mortgage application volume decreased 6.2% on an adjusted basis during the week ended Sept. 4, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, application volume decreased 7% compared with the previous week.
Applications for refinances decreased 10%, while applications for purchases decreased 1%.
On an unadjusted basis, applications for purchases decreased 3% compared with the previous week and were 41% higher than the same week one year ago. The MBA notes that the annual change is inflated due to the shift in Labor Day from the first week in September last year to the second week this year.
The refinance share of mortgage activity decreased to 56.9% of total applications – down from 58.7% the previous week.
Mortgage rates stayed more or less flat compared with the previous week. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.10%, up from 4.08%.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.03%, down from 4.05%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.90%, up from 3.87%.
The average rate for a 15-year FRM was 3.34%, up from 3.30%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.03%, down from 3.05%.
The ARM share of activity decreased to 6.9% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 13.4%, up from 12.7% the week prior. The Veterans Affairs' share of total applications was 10.8%, up from 9.8% the week prior. The U.S. Department of Agriculture's share of total applications was 0.8%, up from 0.7% the week prior.
All rates are based on closings. The survey covers about 75% of the total residential mortgage market.