Mortgage applications decreased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 14.
On an unadjusted basis, the index decreased 4 percent compared with the previous week.
The refinance index decreased 5 percent from the previous week and was 38 percent higher than the same week one year ago.
The seasonally adjusted purchase index increased 1 percent from one week earlier. The unadjusted purchase index decreased 1 percent compared with the previous week and was 27 percent higher than the same week one year ago.
“Positive economic data reported last week on retail sales, as well as a large U.S. Treasury auction, drove mortgage rates to their highest level in two weeks,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The rise in rates dampened refinance activity, but purchase applications continued their strong run and were 27 percent higher than a year ago – the third straight month of year-over-year increases.
“Conventional purchase applications drove last week’s increase, while applications for government loans decreased,” he adds. “The housing market remains a bright spot in the current economic recovery, and these results, combined with July data on housing starts and homebuilder optimism, suggest that housing supply could be increasing to better meet the strong demand for buying a home.”
The refinance share of mortgage activity decreased to 64.6 percent of total applications from 65.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 2.7 percent of total applications.
The FHA share of total applications decreased to 10.3 percent from 10.4 percent the week prior. The VA share of total applications decreased to 11.2 percent from 11.4 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior.
Photo: Joel Kan