Applications for refinances increased 1%, on an adjusted basis, during the week ending Aug. 29, while applications for purchases fell 2%, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
In total, application volume increased 0.2%, on an adjusted basis. On an unadjusted basis, volume was down 1% compared with the previous week.
On an unadjusted basis, purchase volume decreased 4% compared with the previous week and was 12% lower compared to the same week one year ago.
The refinance share of mortgage activity increased to 57% of total applications. The previous week, it was 56%.
Helping to drive the increase in applications for refinances was that mortgage interest rates continued to trend downward – or were at least flat compared to the previous week.
The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.25%, down from 4.28%, to reach the lowest level since June 2013.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) remained unchanged at 4.22%.
The average rate for a 30-year FRM backed by the Federal Housing Administration was 3.99%, up slightly from 3.98% the week prior.
The average rate for a 15-year FRM was 3.48%, up slightly from 3.47%.
The average rate for a 5/1 adjustable-rate mortgage was 3.19%, up from 3.10% the previous week.
The ARM share of activity decreased to 7.8% of total applications.
All rates are based on closings.