Mortgage Application Volume Jumped 2% Labor Day Week

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Mortgage application volume increased 2.0% on an adjusted basis during the week ended September 6, which included the Labor Day holiday.

Applications for refinances increased 0.4% compared with the previous week while applications for purchases increased 5%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.

Lower rates have been significantly pushing up refinance volume in recent months. Applications for refinances were 169% higher compared with the same week one year earlier. 

On an unadjusted basis, total volume decreased 9% compared with the previous week.

Applications for purchases fell 8%, on an unadjusted basis, but were 9% higher compared with the same week one year earlier.

“Mortgages rates continued to decline over the holiday-shortened week, with the 30-year fixed rate decreasing five basis points and remaining near three-year lows,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Refinances were essentially unchanged, up just 0.4 percent, but August overall was the strongest month of activity so far in 2019. Purchase applications rose around five percent, with increases for both conventional and government applications.”

The refinance share of mortgage activity decreased to 60.0% of total applications, down from 60.4% the previous week.

The adjustable-rate mortgage (ARM) share of activity decreased to 5.6 percent of total applications.

The average rate for a 30-year fixed-rate mortgage, based on closings, was 3.82%, down from 3.87% the previous week.

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