Refi apps increased their share of overall activity
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The volume of mortgage applications increased for the first time in six weeks as changes in average contract interest rates were mixed during the week ending August 17, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, increased 4.2% on a seasonally adjusted basis and gained 3% on an unadjusted basis.
The Refinance Index rose 6%. The Purchase Index rose 3% on a seasonally adjusted basis and increased 1% on an unadjusted basis. The unadjusted Purchase Index was also 1% higher than the same period one year ago.
Applications for refinances accounted for 38.7% of all activity, up from 37.6% in the prior period. The adjustable-rate mortgage (ARM) share increased to 6.5% of total applications.
FHA applications saw their share decline to 10.2% from 10.4%, as did VA applications to 10.5% from 10.6%. The USDA share of total applications decreased to 0.7% from 0.8%.
Rates for the 30-year fixed-rate mortgage with conforming loan balances averaged 4.81%, unchanged from the previous period, with points decreasing to 0.42 from 0.43. The average rate for 30-year fixed-rate mortgages with jumbo loan balances decreased to 4.68% from 4.73%, with points decreasing to 0.28 from 0.29.
The 30-year fixed-rate mortgage backed by the FHA saw rates increase to 4.82% from 4.77%, with points increasing to 0.69 from 0.68. The average for 15-year fixed-rate mortgages decreased to 4.25% from 4.27%, with points decreasing to 0.47 from 0.52. Rates for the 5/1 ARM averaged 4%, down from 4.06%, with points increasing to 0.52 from 0.48.
