After rising 3.6% the previous week, mortgage application volume increased 0.2% during the week ended Aug. 21, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume decreased 1% compared with the previous week.
Applications for refinances decreased 1% while applications for purchases increased 2% from one week earlier.
On an unadjusted basis, applications for purchases decreased 0.3% compared with the previous week but increased 18% compared with the same week one year ago.
Driving the increase in applications for purchases was an increase in applications for government home purchase loans. The share of applications for mortgages backed by the Federal Housing Administration (FHA) increased by 5.6% compared with the previous week, while the share of applications for Veterans Affairs loans increased by 5.2%. Conventional purchase applications were, essentially, unchanged from the previous week.
The refinance share of mortgage activity decreased to 55.3% of total applications from 55.5% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.08%, down from 4.11% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.00%, down from 4.03%.
The average rate for a 30-year FRM backed by the FHA was 3.90%, up from 3.88%.
The average rate for a 15-year FRM was 3.33%, down slightly from 3.37%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.96%, down from 2.98%.
The ARM share of activity decreased to 6.8% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 13.1%, up from 12.9% the week prior. The Veterans Affairs' share of total applications was 11.4%, up from 11.1% the week prior. The U.S. Department of Agriculture's share of total applications was 0.8%, unchanged from the week prior.
All rates are based on closings. The survey covers about 75% of the total residential mortgage market.