Mortgage application volume continues to decline as interest rates rise, the Mortgage Bankers Association's Weekly Mortgage Applications Survey reveals.
Application volume dipped 2.5% for the week ending August 23, on an adjusted basis, compared to the week prior. On an unadjusted basis, volume was down 3%.
As to be expected when mortgage interest rates rise, refinancing volume decreased dramatically. Refinancing volume was down 5%, compared to the week prior. In fact, refinancing volume is down 64.2%, compared to the week ending May 3.
Still, refinancings accounted for about 60% of all applications – down from 61% the previous week.
The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index increased 0.3%, compared with the previous week, and was 6% higher than the same week one year ago.
The adjustable-rate mortgage (ARM) share of activity increased to 7% of total applications. The HARP share of refinance applications increased to 35% from 34% the week prior.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.8%, the highest since April 2011, up from 4.68%. The average interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.78%, up from 4.74%.
The average interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.52%, the highest rate since July 2011, up from 4.4%.
The average interest rate for 15-year fixed-rate mortgages increased to 3.84%, the highest rate since April 2011, up from 3.71%.
The average contract interest rate for 5/1 ARMs increased to 3.5%, the highest rate since April 2011, up from 3.44%.
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