Mortgage applications for purchase loans and refinances increased for the first time in five weeks, according to new data from the Mortgage Bankers Association (MBA) covering the week ending Aug. 25.
The Market Composite Index, the trade group’s measure of mortgage loan application volume, increased 2.3% on a seasonally adjusted basis from one week earlier while the unadjusted index increased 1%. The seasonally adjusted Purchase Index increased 2% from one week earlier, although the unadjusted index dipped by a scant 0.3% from the previous week and dropped 27% from the same week one year ago.
The Refinance Index increased 3% from the previous week, although it was also 28% lower than the same week one year ago. The refinance share of mortgage activity increased to 30.1% of total applications from 29.5% the previous week.
Among the federal programs, the FHA share of total applications decreased to 13.2% from 14.3% the week prior while the VA share of total applications remained unchanged at 11.6% and the USDA share of total applications decreased to 0.4% from 0.5%.
“Mortgage rates were mostly unchanged last week, with the 30-year fixed rate remaining at 7.31% – the highest since December 2000,” said Joel Kan, MBA’s vice president and deputy chief economist. “Treasury yields peaked early in the week and did move lower by the end, which may have spurred some activity.”