US Mortgage Applications Rise in the Week Ending August 28

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, August 28, the Market Composite Index—a measure of mortgage loan application volume—increased 0.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.0%.

The Refinance Index decreased 1% from the previous week and was 19% lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 2% from one week earlier. On an unadjusted basis, the Purchase Index decreased 0.3% compared with the prior week and was 0.2% lower than the same week one year ago.

In remarks accompanying the release, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“Mortgage rates reached their highest levels in four weeks as investors’ concerns about inflation and growing deficits push yields higher across the globe. Refinance volume dropped in response, but purchase volume increased modestly over the week and was slightly below last year’s level. In many local markets, potential buyers have plenty of homes to choose, and this is likely supporting transaction volume. Another trend we’re monitoring is more borrowers choosing ARMs, with the ARM share back to 8% last week, its highest level in five weeks.”