According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 11, mortgage applications decreased 0.8% from one week earlier.
The Refinance Index decreased 2% from the previous week and was 35% lower than the same week one year ago.
The seasonally adjusted Purchase Index decreased 0.2% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 26% lower than the same week one year ago.
“The 30-year fixed mortgage rate increased for the third straight week, reaching 7.16%, matching October 2022’s rate and the highest rate since 2001,” says Joel Kan, MBA’s vice president and deputy chief economist. “Overall applications decreased because of these higher rates, as both purchase and refinance applications ended the week at their lowest levels since February 2023.
“Government purchase applications provided a bright spot, increasing 2.4% over the week, driven by increases in both FHA and VA purchase categories. The ARM share of applications rose slightly to 7%, the highest since April 2023, as borrowers look for relief from higher fixed rates.”
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 7.11% from 7.04%, with points decreasing to 0.55 from 0.66 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.93% from 7.02%, with points increasing to 1.17 from 1.14 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 6.57% from 6.51%, with points increasing to 0.94 from 0.92 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 6.20% from 6.36%, with points increasing to 1.45 from 1.20 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
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