The volume of mortgage applications for both purchasing and refinancing fell last week according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.  The MBA's Market Composite Index which measures that volume was down 4.5 percent on a seasonally adjusted basis and 4.7 percent on an unadjusted basis for the week that ended August 10.

The Refinance Index dropped 5 percent from the week ended August 3 and the seasonally adjusted Purchase Index lost 2 percent.  The Purchase Index was down 3 percent on an unadjusted basis from the previous week but MBA did not provide annual information for purchase applications.  Refinancing as a share of all application activity declined fractionally but remained at about 81 percent.

Purchase Index vs 30 Yr Fixed

Refinance Index vs 30 Yr Fixed

With the exception of 15-year fixed-rate mortgages (FRM), mortgage rates during the week remained flat.  That rate increased from 3.08 percent with 0.41 point to 3.12 percent with 0.40 point and the effective rate also increased.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) remained unchanged at 3.76 percent, with points increasing to 0.47 from 0.46 and the effective rate increased.  The rate for jumbo 30-year FRM (balances greater than $417,500) decreased one basis point with points dropping to 0.27 from 0.35 and the effective rate declining.  

The FHA-backed 30-year fixed-rate mortgage rate decreased to 3.53 percent from 3.54 percent, with points unchanged at 0.49.  The effective rate decreased from the previous week.

Hybrid 5/1 adjustable rate mortgage (ARM) rates averaged 2.73 percent with 0.36 point compared to 2.72 percent with 0.40 point and the effective rate decreased.  ARMs of all types accounted for only 4 percent of applications during the week.

All rates are for 80 percent loan-to-value mortgages and points include the origination fee.

MBA's weekly survey is taken among mortgage bankers and commercial banks and thrifts and covers over 75 percent of all U.S. retail residential mortgage applications.  Conducted weekly since 1990, its base period and value for its indices is March 16, 1990=100.