Mortgage application volume jumped 9.9% on an adjusted basis during the week ended Sept. 8, which included Labor Day weekend, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
This could be an indication that the fall home buying season will be better than some analysts had forecast – however, the impact from storms Harvey and Irma could off-set any gains in mortgage volume that might come in the third quarter.
Applications for purchases increased 11%, compared with the previous week, while applications for refinances increased 9%.
Without the seasonal adjustment for the Labor Day holiday, however, total volume decreased 13% compared with the previous week.
Applications for purchases decreased 13%, on an unadjusted basis, but were 7% higher compared with the same week in 2016.
The refinance share of mortgage activity increased to 51.0% of total applications.
Mortgage interest rates edged lower for the week, with the average rate for a 30-year loan decreasing to 4.03%, down from 4.06%.
The adjustable-rate mortgage share of activity decreased to 6.7% of total applications.
Applications for mortgages backed by the Federal Housing Administration represented 9.9% of all applications, up from 9.6% the previous week. Applications for mortgages backed by the Veterans Affairs represented 10.3% of all applications, up from 9.7%, while applications for mortgages backed by the U.S. Department of Agriculture remained unchanged at 0.7%.