Weekly mortgage applications moved lower, and the slow down applied to both purchase financing and refinancing applications.
In the week that ended on Aug. 12, applications for residential loans fell 4 percent from a week prior on a seasonally adjusted basis.
That was according to the Market Composite Index, which indicated there was a 5 percent decline without seasonal adjustments.
The index is included in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which reportedly covers more than three-quarters of all retail mortgage applications.
MBA reported that refinance applications retreated a seasonally adjusted 4 percent from the week ended Aug. 5.
Refinance share, meanwhile widened to 62.6 percent from 62.4 percent a week earlier and 55.5 percent a year earlier.
Applications for purchase financing
were also down 4 percent from the prior report to the lowest level since February — though they strengthened 10 percent from the week ended Aug. 14, 2015. But without any seasonal adjustment, purchase applications fell 5 percent from the report a week ago.
The trade group said that applications for mortgages insured by the Federal Housing Administration accounted for 9.6 percent of the latest activity. FHA share fell from 10.0 percent the previous week and 12.9 percent a year previous.
The survey indicated that applications for loans guaranteed by the Department of Veterans Affairs represented 13.2 percent of all applications. VA share was up from 13.0 percent a week earlier
and 11.1 percent a year earlier.
Interest rates on applications for jumbo mortgages were 4 basis points less than conforming interest rates. The jumbo-conforming spread widened from a negative 1 basis point in the previous report
and a negative 8 BPS a year previous.
Applications for adjustable-rate mortgages made up 4.6 percent of total applications. ARM share was down from 4.7 percent from the report released seven days prior and 6.9 percent from one year prior.
