After increasing slightly the previous week, mortgage applications fell 1.7% during the week ended August 24, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The drop comes despite the fact that mortgage rates dipped slightly compared with the previous week.
As of this past week, mortgage applications had dropped in six of the previous seven weeks.
Applications for refinances fell 3% while applications for purchases decreased 1% compared with the previous week.
This despite the fact that the average rate for a 30-year fixed-rate mortgage fell to 4.78%, down from 4.81%.
On an unadjusted basis, total application volume decreased 3% compared with the previous week.
Applications for purchases decreased 3%, on an unadjusted basis, but were 3% higher compared with the same week one year earlier.
The refinance share of mortgage activity remained unchanged at 38.7%.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.3%.
The average contract interest rate for a 5/1 ARM was 3.95%, down from 4.00%.