After decreasing for the previous three weeks, mortgage application volume jumped an impressive 7.1% during the week ended Aug. 5, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Applications for refinances increased 10%, while applications for purchases increased 3%.
On an unadjusted basis, total volume increased 7.0% compared with the previous week. Applications for purchases increased 2% on an unadjusted basis and increased 13% compared with the same week one year ago.
The refinance share of mortgage activity increased to 62.4% of total applications from 60.7% the previous week.
Rates dropped down slightly: The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.65%, down from 3.67%. The average rate for a 30-year jumbo FRM was 3.64%, down from 3.65%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.52%, down from 3.54%.
The average rate for a 15-year FRM remained unchanged at 2.93%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.81%, down from 2.90%.
The ARM share of activity remained unchanged at 4.7% of total applications.
The decrease in rates pushed the report’s Government Refinance index up 27% and the Conventional Refinance index up 6% compared with one week earlier.
Looking at application volume for the government-backed loans, applications for loans backed by the FHA represented about 10.0% of total applications – up from 9.4% the week prior. Applications for loans backed by the Veterans Affairs were about 13.0% of all applications – up from 12.1%. The U.S. Department of Agriculture share of total applications was 0.6%, down from 0.7%.