US Mortgage Applications Decline in Week Ending August 22

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 22, the Market Composite Index—a measure of mortgage loan application volume—decreased 0.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index fell 2.0%.

The Refinance Index declined 4.0% from the previous week but was 19.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index rose 2.0% from one week earlier. On an unadjusted basis, the Purchase Index increased 0.1% compared with the prior week and was 25.0% 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 inched higher for the second straight week, with the 30-year fixed-rate up to 6.69%. While this was not a significant increase, it was enough to cause a pullback in refinance applications. Purchase applications had their strongest week in over a month, up 2%, and the average loan size increased to its highest level in two months at $433,400. Prospective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling home-price growth in many parts of the country.”