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Mortgage Apps Dip Down

tax, tax deductions, homeownershipMortgage applications dipped more than 2 percent, according to results of the Weekly Mortgage Applications Survey released Wednesday. Applications dropped a seasonally adjusted 2.3 percent—and 4 percent, unadjusted—between August 19 and August 25.

The survey, conducted by the MBA, also showed refinance applications down 2 percent from the week prior. However, refinances as a share of total mortgage activity increased for the week; for the week ending August 25, refis comprised 49.4 percent of all mortgage activity—up from 48.7 percent last week.

Adjustable-rate mortgages accounted for 6.9 percent of all mortgage applications, while FHA applications made up 9.7 percent—a dip from last week’s 10.1 percent share. VA applications comprised 10 percent of all mortgage activity, and USDA applications accounted for 0.7 percent. Both shares were down slightly from the week prior.

Overall purchases were down a seasonally adjusted 3 percent for the week. On an unadjusted basis, purchases declined 5 percent but were up 4 percent compared to the same week last year.

Interest rates declined over the week, with average rates on 30-year fixed-rate mortgages hitting 4.11 percent—their lowest point since November 2016. Average points increased slightly from 0.39 to 0.43, while the effective rate remained steady. Rates on 30-year, fixed-rate FHA loans also remained stable at 4.02 percent.

Fifteen-year, fixed-rate mortgage rates dropped from 3.40 percent to 3.36 percent for the week, hitting their lowest level this year. Points remained unchanged at 0.38, while the effective rate decreased over the week.

Rates on 5/1 adjustable-rate mortgages also declined, dropping from 3.27 percent to 3.26 percent since last week. Points increased from 0.31 to 0.35.

The MBA’s weekly survey takes into account 75 percent of all residential mortgage applications in the country. To view the full results of this week’s survey, visit MBA.org.

 

 

About Author: Aly J. Yale

Aly J. Yale is a longtime writer and editor from Texas. Her resume boasts positions with The Dallas Morning News, NBC, PBS, and various other regional and national publications. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.
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