MBA: Refinance Applications Jumped 4%; Purchase Applications Dipped 1%

Mortgage application volume increased 1.6%, on an adjusted basis, during the week ending Aug. 1 compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

On an unadjusted basis, total volume was up about 1%.

Applications for refinances jumped 4% compared to the previous week, while applications for purchases fell 1%.

On an unadjusted basis, application volume for purchases dropped 2% compared with the previous week and was 14% lower than the same week one year ago.

The refinance share of mortgage activity increased to 55% of total applications, up from 53% the previous week.

Interest rates increased slightly compared to the previous week but remain at historic lows, which likely accounts for the increase in applications for refinances.

The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.35%, up from 4.33% the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.26%, up from 4.22% the week prior.

The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.06%, up from 4.03% the previous week.

The average rate for a 15-year FRM was 3.51%, up from 3.47%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.32%, up slightly from 3.31% the week prior.

The ARM share of activity remained unchanged at 8% of total applications.

All rates are based on closings. The survey covers more than 75% of all U.S. retail residential mortgage applications.


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