Mortgage application activity declined for the week ending Aug. 11, according to new data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the trade group’s measure of mortgage loan application volume, dropped by 0.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index fell 2% from the previous week.
The seasonally adjusted Purchase Index decreased 0.2% from one week earlier while the unadjusted index sank by 2% compared with the previous week and plummeted 26% from the same week one year ago.
The Refinance Index was 2% lower week-over-week and was 35% lower than the same week one year ago. The refinance share of mortgage activity accounted for 28.6% of total applications, a very slight dip from the 28.7% share the previous week.
Among the federal programs, the FHA share of total applications increased to 13.8% from 13.6% the week prior while the VA and USDA shares of total applications remained unchanged at 11.8% at 0.4%, respectively.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “The ARM share of applications rose slightly to 7%, the highest since April 2023, as borrowers look for relief from higher fixed rates.”