Mortgage refinance and purchase applications across the country dropped last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
The MBA’s Refinance Index, part of its Weekly Mortgage Applications Survey, showed that refinance activity for the week ending Sept. 11 decreased 4 percent from the previous week. Last week’s results included an adjustment for the Labor Day holiday. Refinance applications were 30 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 62.8 percent of total applications from 63.1 percent the previous week.
Overall, the Market Composite Index, a measure of mortgage loan application volume, decreased 2.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13 percent compared with the previous week.
“Mortgage rates held steady last week, and the 30-year fixed rate – at 3.07 percent – has now stayed near the 3 percent mark for the past two months,” Joel Kan, MBA’s associate vice president of economic and industry forecasting. “A 5 percent decline in conventional refinances pulled the overall index lower, but activity was still 30 percent higher than last year. With the flurry of refinance activity reported over the past several months, demand may be slowing as remaining borrowers in the market potentially wait for another sizeable drop in rates.”
The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 12 percent compared with the previous week and was 6 percent higher than the same week one year ago.
“Applications to buy a home also decreased last week, but the underlying trend remains strong,” Kan said. “Purchase activity has outpaced year-ago levels for 17 consecutive weeks, with a stronger growth in loans with higher balances pushing MBA’s average loan size to a new survey high of $370,200.”
The FHA share of total applications decreased to 9.7 percent from 10.2 percent the week prior. The VA share of total applications increased to 12.3 percent from 11.2 percent the week prior.
