Mortgage application volume decreased 3.5% on an adjusted basis during the week ended July 29, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
It was the third consecutive week that volume dropped. Applications for refinances decreased 4%, while applications for purchases decreased 2% – this despite a slight decrease in mortgage interest rates.
On an unadjusted basis, volume fell 4% compared with the previous week. Applications for purchases decreased 2%, on an unadjusted basis, but increased 6% compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 60.7% of total applications from 61.1% the previous week.
Based on contract signings, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.67%, down from 3.69%.
The average rate for a 30-year jumbo FRM was 3.65%, down from 3.67%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.54%, down from 3.56%.
The average rate for a 15-year FRM was 2.93%, down from 2.94%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.90%, down from 2.96%.
The ARM share of activity remained unchanged at 4.7% of total applications.
Looking at the government-backed loans, applications for mortgages backed by the FHA represented about 9.4% of all applications – down from 10.1% the week prior. The Veterans Affairs share of total applications was 12.1%, up from 11.9% the week prior. The U.S. Department of Agriculture share of total applications was 0.7%, up from 0.6%.