Washington, August 25--The Mortgage Bankers Association (MBA) today reported a 6.3 percent drop in applications compared to the previous week.
MBA released its Weekly Mortgage Applications Survey for the week ending August 20.
The Market Composite Index of mortgage loan applications - a measure of mortgage loan applications - was 646.3, an decrease of 6.3 percent on a seasonally adjusted basis from 689.4 one week earlier. On an unadjusted basis, the Index decreased by 7.3 percent compared with last week but was up 1.8 percent compared with the same week one year earlier.
The MBA seasonally adjusted Purchase Index decreased by 5.0 percent to 443.7 from 467.1 the previous week. The seasonally adjusted Refinance Index decreased by 8.0 percent to 1824.9 from 1982.7 one week earlier.
Other seasonally adjusted index activity included the Conventional Index, which decreased 6.6 percent to 953.5 from 1021.2 the previous week. The Government Index decreased 1.5 percent to 133.8 from 135.8 the previous week.
The refinance share of mortgage activity decreased to 40.4 percent of total applications from 40.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 32.1 percent of total applications from 33.6 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.78 percent from 5.75 percent one week earlier, with points decreasing to 1.37 from 1.45 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
