MBA: Mortgage Applications Fell 7.3%

After increasing 4.2% the previous week, mortgage application volume plummeted a significant 7.3% on an adjusted basis during the week ended Sept. 16, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

The previous week’s results included an adjustment to account for the Labor Day holiday.

Applications for refinances dropped 8%, while applications for purchases fell 7%, according to the MBA’s data.

On an unadjusted basis, total volume increased 15% compared with the previous week. Applications for purchases increased 15%, on an unadjusted basis, and increased 3% compared with the same week one year ago.

The refinance share of mortgage activity increased to 63.1% of total applications from 62.9% the previous week.

Mortgage rates edged up slightly. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.70%, up from 3.67% the previous week.

The average rate for a 30-year jumbo FRM was 3.69%, up from 3.64%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.56%, up from 3.50%.

The average rate for a 15-year FRM was 2.99%, up from 2.97%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.96%, up from 2.87%.

The ARM share of activity decreased to 4.4% of total applications.

Looking at the government-backed loans, the share of applications for FHA mortgages was 10.2% of all applications – up from 9.6% the week prior. The Veterans Affairs share was 11.6%, down from 12.0%. The U.S. Department of Agriculture share of total applications remained unchanged at 0.7%.

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