After rising just 0.1% the previous week, mortgage application volume increased 3.6% on an adjusted basis during the week ended Aug. 14, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, volume increased 3% compared with the previous week.
Applications for refinances increased 7% while applications for purchases decreased 1%.
On an unadjusted basis, applications for purchases decreased 3% compared with the previous week and increased 19% the same week one year ago.
‘Concerns about the Chinese economy pushed interest rates down last week, resulting in a two basis-point decline in thirty year fixed interest rate, bringing the rate down to its lowest since May 2015,’ explains Lynn Fisher, vice president of research and economics for the MBA, in a statement. ‘The pick-up in refinance activity was led by larger loan sizes on average, as continued investor interest drove jumbo interest rates down even further, by five basis points.’
The refinance share of mortgage activity increased to 55.5% of total applications from 53.1% the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.11%, down from 4.13%.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.03%, down from 4.08%.
The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.88%, down from 3.94%.
The average rate for a 15-year FRM was 3.37%, down from 3.39%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 2.98%, down from 3.11%.
The ARM share of activity increased to 6.9% of total applications.
Looking at application volume by loan type, the FHA's share of total applications was 12.9%, down from 13.3% the week prior. The Veterans Affairs' share of total applications was 11.1%, down from 11.3% the week prior. The U.S. Department of Agriculture's share of total applications was 0.8%, up from 0.7% the week prior.
All rates are based on closings. The survey covers about 75% of the total residential mortgage market.