After falling 6.2% the previous week, mortgage application volume decreased 7.0% on an adjusted basis during the week ended Sept. 11, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume decreased 17% compared with the previous week.
The MBA notes that application volume is typically down during the week of Labor Day, which came in the second week of September this year instead of the first week. In addition, fixed mortgage rates increased slightly two weeks ago, then held more or less flat, which may have contributed to the decrease in volume.
Applications for refinances decreased 9%, while applications for purchases decreased 4%.
On an unadjusted basis, applications for purchases decreased 16% compared with the previous week but were 5% higher compared to the same week one year ago.
The refinance share of mortgage activity fell to 56.2% of total applications from 56.9% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.09%, down slightly from 4.10% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.04%, up slightly from 4.03%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.88%, down from 3.90%.
The average rate for a 15-year FRM was 3.33%, down from 3.34%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.04%, up from 3.03%.
The ARM share of activity decreased to 6.8% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 14.2%, up from 13.4% the week prior. The Veterans Affairs' share of total applications was 10.7%, down from 10.8% the week prior. The U.S. Department of Agriculture's share of total applications was 0.8%, unchanged from the previous week.
All rates are based on closings. The survey covers about 75% of the total residential mortgage market.