US Mortgage Applications Decline in the Week Ending August 15

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 15, the Market Composite Index—a measure of mortgage loan application volume—decreased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined 2.0%.

The Refinance Index decreased 3.0% from the previous week but was 23.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 0.1% from one week earlier. On an unadjusted basis, the Purchase Index decreased 2.0% but was 23.0% higher than the same week one year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates increased slightly last week, with the 30-year fixed rate now at 6.68%. Applications were down as a result, driven by a 16% decrease in VA applications, which are typically a volatile segment of the market. FHA refinance applications increased over the week, as the FHA rate, at 6.39%, remained competitive relative to other loan types. Purchase applications were little changed over the week but were at the strongest pace in four weeks and continued to run well ahead of last year’s pace. Prospective homebuyers remain more active compared to last year despite economic headwinds and uncertainty and affordability challenges.”