After increasing 7.1% the previous week, mortgage application volume decreased 4.0% on an adjusted basis during the week ended Aug. 12, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances decreased 4% despite lower rates. Applications for purchases also decreased 4%.
On an unadjusted basis, total volume decreased 5%. Applications for purchases decreased 5% on an unadjusted basis but increased 10% compared with the same week one year earlier.
The refinance share of mortgage activity increased to 62.6% of total applications from 62.4% the previous week.
The average rate for a 30-year, fixed-rate mortgage (FRM) was about 3.64%, down from 3.65% the previous week.
The average rate for a 30-year jumbo FRM was 3.60%, down from 3.64%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.49%, down from 3.52%.
The average rate for a 15-year FRM was 2.90%, down from 2.93%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.85%, up from 2.81%.
The ARM share of activity decreased to 4.6% of total applications.
Looking at the government loans, applications for mortgages backed by the FHA represented about 9.6% of all applications – down from 10.0% the week prior. The Veterans Affairs share of total applications was about 13.2%, up from 13.0% the week prior. The U.S. Department of Agriculture share of total applications remained unchanged at 0.6%.