RTTNews - Mortgage applications decreased in the week ending August 28, as only one segment of the weekly Mortgage Bankers Association's Applications Survey rose, despite lower mortgage rates.
Mortgage loan application volume decreased 2.2 percent on a seasonally adjusted basis from the previous week. On an unadjusted basis, application volume decreased 3.1 percent, though it increased 22.7 percent compared with the same week last year.
The MBA reported Wednesday that the only segment of the survey to see an increase was the government purchase index, which rose 0.5 percent on a seasonally adjusted basis, its seventh consecutive weekly gain.
The government-insured share of purchase applications was at 40.4 percent for the month of August--its highest share since 1991--up from 38.3 percent in July and 31.7 percent in August 2008.
Meanwhile, the refinance index decreased 3.1 percent from the previous week, when it rose 12.7 percent. The seasonally adjusted purchase index dropped slightly, decreasing one percent.
Refinance shares of mortgage activity remained flat last week at 56.5 percent of total applications. The adjustable rate mortgage share of activity dropped, decreasing to 5.6 percent last week from 6.5 percent the previous week.
Interest rates went down across the board last week, with the average contract interest rate for 30-year fixed-rate mortgages decreasing from 5.24 percent to 5.15 percent, the rate for 15-year fixed-rate mortgages decreasing from 4.58 percent to 4.57 percent and one-year ARMs decreasing from 6.74 percent to 6.71 percent.
The four week moving average for the seasonally adjusted market index is up 1.7 percent. The same average is up 1.2 percent for the seasonally adjusted purchase index and up 2.1 percent for the seasonally adjusted refinance index.
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