After increasing the previous two weeks, mortgage applications reversed course and decreased 1.3% on an adjusted basis during the week ended July 15, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
The prior week’s results included an adjustment for the Fourth of July holiday.
Applications for refinances decreased 1% on an adjusted basis, while applications for purchases decreased 2%.
On an unadjusted basis, total volume increased 24% compared with the previous week. Applications for purchases increased 23% on an unadjusted basis and increased 16% compared with the same week one year ago.
The refinance share of mortgage activity increased to 64.2% of total applications from 64.0%.
Mortgage rates inched up slightly. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.65%, up from 3.60%.
The average rate for a 30-year jumbo FRM was 3.66%, up from 3.61%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) remained unchanged at 3.53%.
The average rate for a 15-year FRM was 2.90%, up from 2.88%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.86%, up from 2.78%.
The share of ARM activity decreased to 5.1% of total applications.
Looking at the government programs, applications for loans backed by the FHA represented about 9.9% of all applications – down from 10.0% the week prior. The Veterans Affairs share of total applications was 11.2%, down from 12.1% the previous week. The U.S. Department of Agriculture share of total applications was about 0.5%, down from 0.6%.