The seasonally adjusted purchase index decreased 0.3% from the prior week’s report. On an unadjusted basis, the composite index decreased by 5% week-over-week. The unadjusted purchase index decreased by 2% for the week, and it remains 16% lower year-over-year.
Adjustable rate mortgage loans accounted for 8% of all applications, up from 7.6% in the prior week.
The MBA’s refinance index decreased by 7%, after rising by 2% in the previous week. The share of refinancings decreased from 57% to 56% of all applications.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.36% to 4.39%, its highest level since May. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.24% to 4.30%. The average interest rate for a 15-year fixed-rate mortgage remained unchanged at 3.56%.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.19% to 3.20%. Rates on a 30-year FHA-backed fixed rate loan rose from 4.03% to 4.08%, again the highest since May 2014.
The rise in home prices has been tapering off, and according to the Federal Housing Finance Agency rose just 0.1% in July compared with June, and July prices were up just 4.4% year-over-year. Mortgage loan interest rates remain low enough to attract first-time buyers, and the build-up in inventory of existing homes for sale may slow the price increases even more.
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