The results include an adjustment for the Labor Day holiday, which shifted the first week in September last year to the second week this year.
Mortgage loan volume decreased 7 percent on a seasonally adjusted basis, according to the Market Composite Index. On an unadjusted basis, the index declined 17 percent from the previous week.
The Refinance Index decreased 9 percent from the week before, MBA found. The seasonally adjusted Purchase Index decreased 4 percent from the week before, while the unadjusted Purchase Index decreased 16 percent and was 5 percent higher than the same week one year ago.
MBA also reported that the refinance share of mortgage activity fell from 56.9 percent the previous week to 56.2 percent of total applications this week. Another share of activity, the adjustable-rate mortgage (ARM) decreased to 6.8 percent of total applications.
FHA’s share of total applications increased from 13.4 percent from a week earlier to 14.2 percent this week, while the VA share of total applications decreased to 10.7 percent from 10.8 percent the week prior. USDA total applications remained unchanged from 0.8 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.09 percent from 4.10 percent, with points increasing to 0.42 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
\The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.04 percent from 4.03 percent, with points decreasing to 0.26 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
Click here to view the Mortgage Bankers Association full report.