Mortgage application activity declined in the week ending Aug. 15, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was down by 2%.
The seasonally adjusted Purchase Index inched up by a scant 0.1% from one week earlier, while the unadjusted index was down by 2% compared with the previous week and was 23% higher than the same week one year ago. The Refinance Index decreased 3% from the previous week and was 23% higher than the same week one year ago; the refinance share of mortgage activity dipped to 46.1% of total applications from 46.5% the previous week.
Among the federal program, the FHA share of total applications increased to 19.1% from 18.4% the week prior while the VA share of total applications decreased to 13.4% from 14.2% and the USDA share of total applications bumped up to 0.6% from 0.5%.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “FHA refinance applications increased over the week, as the FHA rate, at 6.39%, remained competitive relative to other loan types. Purchase applications were little changed over the week but were at the strongest pace in four weeks and continued to run well ahead of last year’s pace. Prospective homebuyers remain more active compared to last year despite economic headwinds and uncertainty and affordability challenges.”
