After rising on the back of a double-digit jump in refinances, mortgage applications experienced another dive last week, according to figures from the Mortgage Bankers Association (MBA).
For the week ending September 19, the group reported a seasonally adjusted 4.1 percent decline in overall loan application volumes, a step backward after the previous week's 7.9 percent recovery. Unadjusted, applications fell 5 percent from the week prior.
Declines were recorded in both purchase and refinance loan applications, with refinances seeing the larger drop at 7 percent. The drop came as mortgage rates moved up to their highest level since May, averaging 4.39 percent for a 30-year fixed-rate loan.
With the latest decrease, the refinance share of total applications fell to 56 percent for the week.
Meanwhile, applications for home purchases fell 0.3 percent on a seasonally adjusted basis. Taking out seasonal factors, MBA's purchase index was down 2 percent week-to-week and 16 percent compared to this time last year.