Mortgage applications dropped again, falling 2.3% from one week earlier, according to the latest data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Aug. 25.
Broken up, the Refinance Index decreased 2% from the previous week, as the seasonally adjusted Purchase Index decreased 3% from one week earlier.
The refinance share of mortgage activity inched very close to 50%, coming in at 49.4% of total applications, up from 48.7% the previous week. The adjustable-rate mortgage share of activity increased to 6.9% of total applications.
Following suit, the Federal Housing Administration’s share of total applications decreased to 9.7% from 10.1% the week prior.
The Veterans Affairs’ share of total applications decreased to 10.0% from 10.2% the week prior, and the Department of Agriculture’s share of total applications decreased to 0.7% from 0.8% the week prior.
Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.11%, from 4.12%. This marks its lowest level since November 2016.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.00% from 3.99%.
Staying still, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4.02%.
The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since November 2016, 3.36%, while the average contract interest rate for 5/1 ARMs decreased to 3.26% from 3.27%.
