After increasing a whopping 13.9% the previous week, mortgage application volume decreased 6.7% on an adjusted basis during the week ended Sept. 25, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume decreased 7% compared with the previous week.
Applications for refinances decreased 8%, while applications for purchases fell 6%.
On an unadjusted basis, applications for purchases decreased 6% compared with the previous week but were 20% higher compared with the same week one year ago.
The refinance share of mortgage activity decreased to 58.0% of total applications from 58.4% the previous week.
Fixed mortgage rates were more or less flat. The average rate for a 30-year, fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.08%, down slightly from 4.09% the previous week.
The average rate for a 30-year, FRM with jumbo loan balance (greater than $417,000) was 3.96%, down from 3.99%.
The average rate for a 30-year, FRM backed by the Federal Housing Administration (FHA) was 3.87%, down from 3.88%.
The average rate for a 15-year, FRM was 3.29%, down from 3.31%.
The average rate for a 5/1, adjustable-rate mortgage (ARM) was 2.95%, unchanged from the previous week.
The ARM share of activity remained unchanged at 6.9% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 13.8%, up from 12.9% the week prior. The Veterans Affairs' share of total applications was 10.3%, up from 10.0% the week prior. The U.S. Department of Agriculture's share of total applications was 0.7%, unchanged from the previous week.
All rates are based on closings. The survey covers about 75% of the total residential mortgage market.